Silver Prices Crash, Gold Closes Lower: On Thursday, a huge fall in silver prices was recorded in the Indian bullion market. Silver became cheaper by Rs 4,900 to Rs 90,900 per kg, while the price of gold also decreased by Rs 100 and came to Rs 78,700 per 10 grams. At the same time, there was a decline of Rs 400 per 10 grams in the price of gold of 99.5 percent purity and it closed at Rs 78,300. In comparison, on Wednesday, gold of 99.9 percent purity closed at Rs 78,800 and gold of 99.5 percent purity closed at Rs 78,700 per 10 grams. The decline on Thursday is mainly being attributed to the huge selling done by wholesalers and retailers.
Why did the price of silver fall?
This fall in the price of silver has come due to weak demand by investors and jewelers. According to All India Bullion Association, on Wednesday silver had registered a sharp rise of Rs 5,200 and regained the level of Rs 95,000 per kg. But on Thursday the prices came down again due to weak offtake.
Apart from this, silver and gold prices in the international market are under pressure due to the strengthening of the US dollar and geo-political tension. Praveen Singh, Associate Vice President (Commodities), Mirae Asset Sharekhan, said, “The Russia-Ukraine war and the strengthening of the dollar have increased volatility in the market. “Investors are turning to safer options, but this trend is unsustainable.”
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What was the impact on gold prices?
A slight decline was also recorded in the price of gold. Gold of 99.9% purity closed at Rs 78,800 per 10 grams, while gold of 99.5% purity closed at Rs 78,700 per 10 grams.
Jatin Trivedi, Vice President Research Analyst (Commodity and Currency), LKP Securities, said, “Geo-political tensions, especially between Russia and Ukraine, are supporting gold prices. But due to the movement of the dollar index and uncertainty of the global market, this support is not stable.”
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international market trend
In the international market, Comex silver was trading 0.15% lower at US $ 30.51 an ounce. At the same time, Comex Gold Futures increased by 0.31% to US $ 2,673 per ounce.“Mixed US data, volatility in the dollar index and fluctuations in market expectations regarding rate cut by the Federal Reserve are keeping gold prices limited,” said Manav Modi, Commodity Research Analyst, Motilal Oswal Financial Services.
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What are the future possibilities?
Experts believe that the prices of gold and silver will continue to fluctuate in the near future. Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said, “Trading volumes are likely to be low in the US market due to the Thanksgiving holiday. “Investors will now focus on the ceasefire in the Middle East and global trade policies.”Pranab Mer, Vice President (Commodity Research), JP Morgan Financial Services, said, “Gold and silver are likely to be traded in a limited range in the coming days. “The market will evaluate the impact of the Russia-Ukraine war and Donald Trump’s tariff policy.”
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What should investors do?
If you are planning to invest in gold and silver, keep in mind the current market volatility. Fall in prices can be considered an investment opportunity, but do not take any hasty decision without taking expert advice.
