Gold-Silver Rates Crash: MCX Gold Falls To Rs 1.53 Lakh, Silver Hits Rs 2.40 Lakh

New Delhi: There was a sharp fall in the prices of gold and silver in India on Monday. Gold price on MCX fell to Rs 153,031 per 10 grams in intraday trade. At the same time, the price of silver also slipped to the level of around Rs 2.40 lakh per kg. Although later both the metals recovered some losses, but both remained in the red during trading.

How much did the prices of gold and silver fall on MCX?

There was pressure on the prices of gold and silver on Monday. MCX Gold seemed to be struggling to maintain the level of Rs 1.54 lakh per 10 grams. On the other hand, MCX Silver was trading around Rs 2.41 lakh per kg.

After the initial fall, there was some recovery in both the precious metals, but the pressure in the market did not end completely.

What was the condition of gold and silver in the international market?

Trading in the global bullion market was also mixed. Spot gold recorded a decline of about 0.44 percent and its price remained around 4,363 dollars an ounce.

On the contrary, spot silver witnessed a slight rise and remained above $66 an ounce. That means the movement of gold and silver in the international market was not the same.

What was the impact of the fall in crude oil prices?

A sharp fall in crude oil prices was also recorded on Monday. US WTI crude fell by about 2.3 percent to around 98 dollara per barrel. At the same time, Brent crude fell by more than 2.2 percent and was seen trading at around 101.6 dollars per barrel.

Fluctuations in crude oil prices can affect expectations regarding inflation and interest rates of central banks, which also impacts assets like gold.

Why did gold come under pressure due to increase in US Treasury yield?

The 10-year benchmark treasury yield in America increased by about 7 basis points to 5 percent. Discussion continues in the market regarding the tough stance of the US Federal Reserve.

Generally, rising US bond yields and a stronger dollar may put pressure on gold as it increases the attractiveness of alternatives like bonds compared to non-interest-bearing gold.

What things will affect gold-silver rates this week?

This week, many global factors will keep an eye on the prices of gold and silver in the Indian market. Especially the US dollar, US Treasury yields, inflation data and statements of Federal Reserve officials can influence the direction of the market.

Apart from this, the proposed talks between the leaders of America and China and developments related to West Asia will also be important for investors. In such a situation, there is a possibility that fluctuations in gold and silver will continue in the coming days.