US President Donald Trump’s announcement of Iran-Israel ceasefire has brought a storm in the global markets. After this announcement, there was a big stir in gold-silver as well as stock markets. While the Indian stock market closed with a rise, there was a huge decline in the prices of gold and silver. However, after the market closed, the news came that Israel and Iran have violated the ceasefire, but still the price of gold continues to fall.
Big fall in gold and silver: MCX and bullion market situation
Gold and silver prices fell on MCX
Gold: Reached Rs 96,748 per 10 grams with a fall of Rs 2,640.
5 August futures: Gold fell by Rs 3,000 to Rs 96,422 per 10 grams.
Silver: Decline of about Rs 1,000 was recorded.
Indian bullion market also in decline
24 carat gold: Decline of Rs 2,100 to Rs 97,263 per 10 grams.
23 carat gold: Rs 96,874 per 10 grams.
22 carat gold: Rs 89,093 per 10 grams.
18 carat gold: Decline of Rs 2,000 to Rs 72,947 per 10 grams.
Silver: Decline from Rs 1,07,063 to Rs 1,05,967 per kg.
Why did the prices of gold and silver fall?
Effect of ceasefire: With the reduction in tension in the Middle East, investors’ interest shifted from gold and silver to the stock markets.
Strength in dollar: Strengthening of the US dollar put pressure on gold prices.
Risk on sentiment: Investors turned to risky assets (shares/crypto), leading to selling in gold and silver.
Will there be further decline?
Analysts believe that if the situation in the Middle East remains calm, the prices of gold and silver may come down further. However, after the news of ceasefire violation, the reaction of the markets on the next trading day will be worth watching.
Advice for investors:
If you are thinking of investing in gold and silver, keep an eye on market movements.
Volatility may remain for short-term traders.
Conclusion
Trump’s announcement gave relief to the markets, but the news of ceasefire violation has again created uncertainty. Now investors’ eyes are on the situation in the Middle East and international markets.
“The volatility in the markets continues, invest wisely.”
(This information is based on market analysis. Consult an expert before investing.)
