Gold Price Today: When there is an atmosphere of tension around the world, the prices of precious metals like gold and silver increase rapidly. People’s trust in them becomes stronger because they are considered the safest for investment. But as soon as any news of peace comes, the market sentiments suddenly change.
Why did the price of gold fall after the news of the ceasefire
The situation between Iran and Israel has been very tense for the last few weeks. On the one hand, Israel had targeted Iran’s nuclear bases under “Operation Rising Lion”, while on the other hand, Iran also responded with missile and drone attacks. In such an environment, investors were nervous and were rushing towards gold. This was the reason that the price of gold crossed ₹ 1,00,000 per 10 grams in early June.
A fall in gold and silver rates across the country
On Tuesday, the price of 22 carat gold in Mumbai was ₹ 91,550 per 10 grams, while 24 carat gold was trading at ₹ 99,870 per 10 grams. This is a big drop of about ₹ 800 compared to the past days. Similarly, silver also fell to ₹ 1,00,900 per kg.
The same trend was seen in cities like Delhi, Jaipur, Patna, Ahmedabad, Chennai and Bengaluru. In Delhi, 22 carat gold is being sold at ₹ 92,440 and 24 carat at ₹ 1,00,830. Experts believe that if the ceasefire continues in the coming days, then a further decline in prices can be seen.
Effect of fall in futures on MCX
A sharp decline in the prices of gold and silver was also recorded on the Multi Commodity Exchange (MCX). The futures price of gold fell by about 1.23% to ₹ 98,168 per 10 grams, which had gone above ₹ 1,00,000 a few days ago. At the same time, the August futures price of silver also fell by about 0.75% to ₹ 1,05,962 per kg, whereas some time ago it had reached ₹ 1,10,000.
Big fall in crude oil prices too
This ceasefire affected not only precious metals but also crude oil prices. On June 23, crude oil fell by about 8% to ₹ 6,475 per barrel. Till a few days ago, when the threat of war was looming, crude oil prices had increased by 10%.
The reason for this fall is that the threat to sensitive oil supply places like the Strait of Hormuz has reduced. This has brought a wave of relief in markets around the world, and the mood of investors has changed.
Is this fall permanent
Market experts believe that gold prices have reached their highest level at present, and now they can fall by 10-12% in the next two months. Some experts even say that gold prices can fall by up to 30% in the next year, if the global situation remains normal.
However, it is also important to note that if war or any kind of uncertainty increases again, then gold prices may rise again. Therefore, investors need to be cautious and make decisions at the right time.
Which factors affect gold prices in India
Gold prices in India do not depend only on the international market. They are affected by various factors, including import duty, GST, fluctuations in foreign exchange rates, and domestic demand. Apart from this, the demand for gold suddenly increases during festivals, weddings and religious events, which also affects the prices.
Gold in India is not just a means of investment, but a part of emotions. It is an essential part of every large function, from weddings. This is the reason why people here keep a close eye on its prices.
Advice for investors
If you are thinking of investing in gold, then it would be wise to wait a little for now. The market is currently in a state of improvement, and it would be right to take any big step only after the prices stabilise. Also, instead of physical gold, options like Gold ETFs or Sovereign Gold Bonds can be considered, which are more secure and tax-friendly.
Disclaimer: This article has been written to provide general information only. The information given in it is not any kind of investment advice. Consult your financial advisor before investing in precious metals like gold and silver. Volatility is possible in the market, so invest wisely and responsibly.
Also Read:
Gold Price Hits New Highs on June 23 as Middle East Unrest Fuels Market Fear
Gold Silver Prices Plunge to New Lows: What Investors Need to Know
Gold Rate Today: Prices Continue to Fall, Here’s What You Need to Know
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