Gold and silver prices have fallen sharply once again in the international market. On Friday, both metals took an immediate hit on COMEX, the global commodity exchange, with prices dropping as soon as trading began. Market experts said gold has slipped below a key support level of $4,750 per ounce, triggering further decline. Silver prices have also broken their support zone, falling sharply at market open.
The weakness was also visible in the domestic market. On Thursday, gold’s April futures contract on the MCX dropped to ₹1,52,260 per 10 grams, marking a steep fall from its recent record highs. Silver prices, too, have witnessed a significant correction, adding to investor concern.
Why are gold and silver prices falling?
Experts point to a strengthening US dollar as the main reason behind the fall. When the dollar gains value, gold and silver usually lose appeal, as they are priced in dollars globally. Market participants also believe that easing tension between the US and Iran has reduced uncertainty, weakening demand for safe-haven assets like gold.
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According to analysts, nuclear-related talks between the US and Iran are set to begin in Oman. This development has improved risk sentiment in global markets, encouraging investors to move away from safe assets and towards riskier investments. As a result, money is flowing out of gold and silver.
The impact was also felt in India as markets opened on Friday. Stock markets slipped, and prices of gold and silver exchange-traded funds (ETFs) declined alongside, reflecting reduced investor interest in precious metals amid changing global cues.
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