Mumbai, June 19: A reduction in geopolitical tensions has led to a decrease in demand for safe-haven investments, resulting in a decline in gold and silver prices for the third consecutive session on Friday.
On the Multi Commodity Exchange (MCX), gold for August delivery fell by 2.3 percent, reaching a low of ₹145,800 from its previous close of ₹149,309. The yellow metal opened at ₹147,175 per 10 grams today.
As of the time of writing (around 10:29 AM), gold was trading at ₹145,802 per 10 grams, reflecting a drop of ₹3,507 or 2.35 percent.
Meanwhile, silver for July delivery was trading at ₹229,057 per kilogram, down by ₹8,515 or 3.58 percent. The white metal opened at ₹232,371, down ₹5,201 or 2.1 percent from its previous close, and reached a day low of ₹228,800, a decline of 3.6 percent.
In international markets, COMEX gold was trading at $4,141, down 2.4 percent, while COMEX silver saw a decline of 4.3 percent, trading at $63.45.
A market expert noted that gold prices peaked at $5,595 in January, marking a nearly 24 percent decline since then. The recent sell-off, attributed to the U.S. Federal Reserve, has exacerbated this drop. Contributing factors include rising oil prices sparking inflation fears, an environment of increasing interest rates, a strengthening dollar, and the unwinding of leveraged positions. These fluctuations are periodic changes rather than signs of fundamental weakness.
The expert cautioned that anyone confidently asserting that prices have reached their lowest point is merely speculating. While fundamental issues remain unchanged—such as historically high government debt, ongoing gold accumulation by central banks, and questions about the sustainability of reserve currencies—it is uncertain whether this is the right time to invest or if prices will decline further.
However, investors with a five-year outlook who have not yet invested in precious metals like gold should at least consider doing so.
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