Gold Silver Price Crash: Commodity market in turmoil; Gold and silver prices plummeted due to the strength of the US dollar and the US-Iran nuclear deal.
Global developments, a 13-month strength in the US dollar and positive news about the US-Iran nuclear deal have created a lot of excitement in the commodity markets. Gold andSilverThe price of gold fell for the second consecutive day. On the Multi Commodity Exchange, gold fell by 3.74 percent whileSilverIt has fallen by more than 3.55 percent. This has pushed gold to close to Rs 1.40 lakh per 10 grams and silver to close to Rs 2.15 lakh per kg on MCX.
The latest gold and silver prices in the bullion market
The fall in the global market has also had a direct impact on the Indian bullion market. According to the official website of the ‘India Bullion and Jewelers Association’, 24-carat gold fell by Rs 2,817 to Rs 1,42,178 per 10 grams. While silver fell by Rs 5,448 to Rs 2,22,035 per kilogram.
How much cheaper did gold and silver become in June?
The fall in gold and silver prices in the current month of June is shocking for investors and consumers. On June 1, the rate of 24-carat gold was Rs 1,55,599 per 10 grams, which came to Rs 1,42,178 on June 24. That is, gold has become cheaper by Rs 11,709 in just 24 days. On June 1, silver was Rs 2,63,250 per kg, and now it has come to Rs 2,22,035. That is, silver has become cheaper by Rs 41,215 in the last 24 days.
Why did gold and silver prices suddenly plummet? Experts reveal 4 reasons…
The dollar index has risen above 101.4 on the back of a strong dollar (at a 13-month high) following the US Federal Reserve’s hawkish stance. The strengthening dollar is putting pressure on precious metals like gold. Demand for gold has fallen as the possibility of an interest rate hike in September has increased.
US-Iran Nuclear Deal: Amidst the tensions in the Middle East, there is news that an interim peace framework has been formed between the US and Iran. This has reduced geopolitical tensions and the ‘safe haven’ support for gold has ended. Spot gold in the global market has fallen below $ 4,020, reaching a 7-month low.
Market Sentiment and Expiration: The market sentiment for gold and silver is currently weak. Also, traders are closing their positions due to the upcoming expiration of contracts, which has increased selling pressure in the market.
Selling in Tech Shares: Due to selling in American Tech Shares and weakness in Industrial Metals, Silver took a big hit and Silver has reached its lowest level in 6 months.
Expert Advice: According to Anindya Banerjee, pressure on the commodity market may continue for now. Therefore, investors should not panic in the market and invest with caution and with a long-term perspective.