Editor’s Note
This article examines the recent pressure on gold and silver prices, driven by a strengthening US dollar and declines in international markets, which has reversed a brief recovery trend.
Gold and silver prices have been a cause for concern for the common people for some time now. After touching record levels in January, both precious metals witnessed a sharp decline. Although there were signs of a slight recovery over the past two to three days, weakness returned to the prices on Tuesday. The impact of the decline in international markets and the strengthening of the dollar was clearly visible in the domestic market.
On the Multi Commodity Exchange today, both gold and silver opened with a decline. Gold for April delivery broke by 2,065 rupees to open at 156,001 rupees per 10 grams. Previously, on Monday, it had closed at the level of 158,066 rupees per 10 grams. Meanwhile, silver for March delivery also remained under pressure. The price of silver decreased by 2,623 rupees and was seen starting trading at 262,620 rupees per kilogram.
Weakness was also clearly visible in foreign markets today. After two consecutive days of gains, profit-taking began and a decline of nearly 2 percent was recorded in prices. During Asian trading, spot gold fell 0.70 percent to $5,040 per ounce. The decline in silver was even greater. Spot silver broke by about 1.94 percent to reach around $80.33 per ounce.
Gold has already fallen more than 11 percent from its all-time high of $5,608.25 per ounce. The situation for silver is even weaker. It has lost nearly half its value from its peak of $121.64 per ounce. The market’s movement in the coming days will depend on global cues.