Mumbai, February 2: Gold and silver prices continued to drop in the bullion market, showing significant declines on Monday despite no major announcements about these metals in the recent budget. The commodity market is under pressure, reflecting a clear downward trend for precious metals.
On the first trading day of the week, both gold and silver saw sharp falls on the Multi Commodity Exchange (MCX). Silver, which had reached record highs, slipped close to ₹179,000 per kilogram, while gold dropped to around ₹137,000 per 10 grams. This marks the third consecutive day of falling prices for these metals.
As of 11:22 AM, February delivery gold contracts on MCX were down ₹5,719, or 4.02%, trading at ₹1,36,498 per 10 grams. Meanwhile, March delivery silver contracts fell by ₹23,908, or nearly 9%, to ₹2,41,744 per kilogram. The pressure in the bullion market is attributed to profit booking by investors and weak global cues.
Internationally, spot gold dropped nearly 4% in early Monday trading, while silver also saw a similar decline. After falling as much as 12% during the session, silver managed to hold above $80 per ounce. Earlier in the day, silver experienced its biggest intraday fall in 10 years, stirring significant market activity.
The recent price drops come after gold and silver had reached record highs in January, driven by global tensions, weakening currencies, and concerns over the US Federal Reserve’s independence. Investors had turned to these metals as safe-haven assets during uncertain times.
The main reason behind the latest decline is linked to news from the United States. Reports suggest that former President Donald Trump is planning to nominate Kevin Warsh as the Federal Reserve Chair. This news strengthened the US dollar, altering traders’ expectations of a weaker dollar and triggering heavy selling in gold and silver.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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