Late-Night Shock! Gold Falls by ₹3,800 and Silver Drops by ₹9,000
Tonight, the commodity market experienced significant turbulence. Gold and silver prices dropped so sharply that many investors were taken by surprise. On MCX, gold prices fell by ₹3,800 per 10 grams, while silver saw a reduction of nearly ₹9,000 per kilogram.
Tension in Global Markets
The decline was not limited to India. In global markets, the shine of gold and silver dimmed as well. Internationally, gold fell to around $150 per ounce, and silver recorded a roughly 4% drop. This sudden decline has raised concerns among investors, particularly those who consider gold a safe-haven investment.
Why Gold Isn’t Rising Despite Tensions
Typically, during wars or geopolitical tensions, gold prices tend to rise. However, this time the scenario was different. Despite escalating tensions between the U.S. and Iran, gold prices slipped downward.
According to a report by Motilal Oswal, the main reason is rising crude oil prices and inflation fears. Higher inflation may prompt central banks to maintain higher interest rates. Since gold does not generate interest, high rates act as a headwind for gold prices, preventing them from rising even amid geopolitical tensions.
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Eyes on the U.S. Federal Reserve
Currently, the biggest concern in the market is the policy of the U.S. Federal Reserve (Fed). Investors believe that if the Fed signals keeping interest rates high for an extended period, it could put further pressure on gold. On the other hand, even a hint of rate easing in the coming months could provide some support to prices.
Key Levels for Investors
For those trading or investing in gold and silver, these levels are important to monitor:
Gold:
- Support: ₹1,54,800 and ₹1,53,500
- Resistance: ₹1,57,200 to ₹1,58,600
Silver:
- Support: ₹2,50,000 and ₹2,46,600
- Resistance: ₹2,57,700 to ₹2,61,600
FAQ
How much have gold and silver fallen?
On MCX, gold dropped ₹3,800 per 10 grams, and silver declined nearly ₹9,000 per kilogram.
What is the situation in international markets?
Gold fell to around $150 per ounce, while silver saw a roughly 4% drop.
Why isn’t gold rising despite tensions?
Rising crude oil prices, inflation fears, and expectations of high interest rates are limiting gold’s upward movement.
How will the Fed’s decision impact gold?
If the Fed signals prolonged high interest rates, gold prices could face additional pressure.
What are the immediate support levels?
A5: Gold: ₹1,54,800 / ₹1,53,500 | Silver: ₹2,50,000 / ₹2,46,600
Source: Analysis by Tredixo
