Gold and Silver Price Changes: Recent Trends and Future Forecasts

After reaching the ₹1 lakh mark, gold prices dropped sharply by ₹3,800 per 10 grams over the last two days, indicating a sudden correction in the market. The comments of former US President Donald Trump and the US Federal Reserve (Fed) are considered the main reasons for this.

MCX Data and Market Situation

MCX is a major commodity trading venue in India called Multi Commodity Exchange. Here, commodities like gold, silver, oil etc. are bought and sold through futures contracts.

Gold Situation

• Gold June Futures Contract opened at ₹96,188 / 10 grams on Thursday. This is an increase of ₹1,466 (1.5%). That is, the price of gold rose slightly on Thursday.

• At the end of the previous day (Wednesday), Gold was at ₹94,722 / 10 grams. It fell by 2.69%. That is, the price of gold fell sharply on Wednesday.

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Why did these changes happen?

• Generally, when confidence in the market decreases, investors try to get back their investments. Thus, they sell gold. This reduces the price.

• Since the price of gold was already high, some investors sold to “lock” their profits. This also pushes the price of gold down.

Silver May Futures Contract

• Thursday’s opening price: ₹97.75 / kg. This is ₹124 (0.13%) lower That is, the price of silver fell slightly on Thursday.

• Wednesday’s closing price: ₹97,799 / kg. This is a 2% increase That is, the price of silver increased significantly the previous day.

Why did silver increase?

New home sales in the US increased. This is a good sign for economic growth. This increases demand in industries (construction, electronics).

Manufacturing PMI was good. This indicates economic activity. Silver is a key material in many industries (solar panels, electronics).

The result

• Such favorable economic data increases the demand for silver, which investors believe. As a result, the price of silver rose by 2% on Wednesday.

Impact of global market indices

The DXY value was at 99.69. It decreased by 0.15%. That is, the price of the US dollar decreased slightly.

The result

When the dollar price decreases, precious metals such as gold are very welcome. The reason is that gold is priced in the US dollar, so if the dollar value decreases, it will be more advantageous for gold buyers.

International Gold Price

Gold price has fallen below $3,300/Troy Ounce. 1 Troy Ounce = about 31.1 grams. This is a key measurement. It indicates the decline of gold. Despite this price decline, global central banks are still buying gold.

Despite the recent decline in the price of gold, central banks around the world have continued to increase their gold reserves. Central banks view gold as a safe haven asset and aim to use it as a hedge against economic crises or market volatility. That is why the temporary decline in gold prices has not changed their investment plans.

Similarly, ETF (Exchange-Traded Fund) investors continue to invest in gold with confidence. ETF is a stock investment method that does not involve direct purchase of gold, but rather its market value. The increase in investments in it is a clear sign that investors are confident in the future value of gold.

When viewed in context, the decline in gold prices is likely to be a temporary change. Experts emphasize that the continued gold purchases by central banks and the increase in investments in ETFs will keep gold stable in the long term.

In other words, there is no need to fear the current price decline. Gold currently has all the fundamental support it needs to be a stable, safe investment asset, so experts are confident that this is an opportunity that could provide great benefits to long-term investors.