On the very first trading day of the week i.e. 8th June, a big news has come out from the commodity market for common customers and investors. Today, the bullion market has given some relief to the people who have been suffering from inflation for a long time. Actually, a huge fall has been recorded in the prices of gold and silver. With the opening of the market, there was pressure on the yellow metal, due to which the price of gold fell by more than Rs 1,200, while a huge fall of more than Rs 4,400 was recorded in silver. The reason behind this big decline is once again the deepening tension in West Asia and the weakness in the global markets.
Gold fell flat on MCX
Gold had a very weak start in the domestic futures market (MCX) today. By 9:23 am, August futures on MCX were trading at Rs 1,54,380 per 10 grams, down by Rs 1,214. This is a decline of about 0.78 percent compared to the previous closing price. If we look at the technical data of the market, the trend of short buildup in open interest is clearly visible. In market language, its simple meaning is that traders fear further decline in gold prices, due to which new deals are continuously being added in favor of decline in the market.
The shine of silver also faded
Along with gold, heavy selling pressure has also been seen in silver today. By 9:26 am on MCX, the price of July futures (Silver Futures) fell by Rs 4,463 to Rs 2,44,074 per kg. In percentage terms, this is a big decline of about 1.80 percent. A situation of long unwinding is being created in silver deals. This means that those investors who had earlier bought in the hope that the prices would go up, are now rapidly closing old deals to reduce their losses after seeing the changing trend of the market.
How much relief was given in the bullion market?
Like the futures market, there is a soft atmosphere in the retail i.e. India bullion market too. For common buyers who buy jewelery directly from shops, prices have also reduced today. According to the latest data, today the price of gold in the spot market has fallen by Rs 1,150 to Rs 1,54,610 per 10 grams, which shows a weakness of 0.74 percent. Similarly, spot silver is also falling by Rs 3,950 and is being sold at Rs 2,45,160 per kg. Here too there has been a direct fall of 1.59 percent in silver.
West Asia’s tension became the reason
In fact, tension in West Asia has once again reached its peak. Israel has announced an attack on some military bases of Iran. This aggressive stance has greatly increased the concern of investors. The market fears that the fragile ceasefire in the region may break at any time. Generally, in times of stress, the demand for gold increases as a safe investment, but at present, amid the all-round weakness prevailing in the global markets, the attitude of investors has completely changed, due to which there has been huge pressure on the prices of both gold and silver.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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