There was a huge fall in the prices of gold and silver on Thursday. Silver became cheaper by Rs 30,300. At the same time, gold prices fell by Rs 4,500. All India Bullion Association has given this information. Due to global selling and strengthening of US dollar, silver fell by 10.16 percent to Rs 2.68 lakh per kg in the capital Delhi. Whereas gold fell by almost 3 percent to Rs 1.6 lakh per 10 grams.
Precious metals face selloff and volatility
Gold and silver prices fell on Thursday, snapping a two-day rising streak, as the precious metals faced fresh selling pressure and increased volatility, said Saumil Gandhi, senior analyst, commodities, HDFC Securities. He said the decline coincided with a strengthening US dollar, hawkish comments from Federal Reserve officials and softening of demand for safe haven investments.
Gold and silver prices on MCX
On the Multi Commodity Exchange (MCX), silver for March delivery fell by Rs 26,850, or 10 per cent, to Rs 2,42,000 per kg. In the previous session, the price of silver was Rs 2,68,850 per kg.
Similarly, gold price for April contract declined by Rs 2,310 or 1.51 per cent to Rs 1,50,736 per 10 gram as compared to Wednesday’s closing price of Rs 1,53,046 per 10 gram.
Gold and silver prices fell in international markets
Meanwhile, a sharp decline was also seen in the prices of silver and gold in the international markets, with the latter falling by up to 13 per cent. Spot silver fell US$11.94, or 13.54 per cent, to US$76.26 an ounce, while gold fell US$137.32, or 2.77 per cent, to US$4,826.99 an ounce.
Experts told the reasons for the decline
The dollar index, which measures the greenback’s performance against a basket of six major currencies, rose 0.25 percent to 97.86, putting heavy pressure on commodities denominated in the American currency.
Praveen Singh, Head of Commodities, Mirae Asset Sharekhan, said spot gold prices declined on Thursday as the US dollar strengthened and a state of caution prevails ahead of US-Iran talks in Oman tomorrow.
Manav Modi, commodities analyst at Motilal Oswal Financial Services Ltd, said silver prices once again weakened after recovering from last week’s fall. He further said that silver prices further declined following heavy selling in China, where Shanghai silver futures fell by up to 15 per cent during the session. UBS SIDC, a major Chinese silver futures fund, reached its daily loss limit of 10 percent for the fourth consecutive day, triggering panic selling and forced liquidations. Modi said global markets reacted due to aggressive selling by China.
