There was a lot of activity in the bullion market on Monday and on the very first day of the week, the shine of precious metals faded. Amidst the signals from the global market, there has been a huge decline in the prices of both gold and silver in the domestic market. As soon as trading started on Multi Commodity Exchange (MCX), the graphs of gold and silver were seen rolling downwards, due to which the faces of people planning to buy were bright.

Heavy fall in silver prices

Silver prices surprised everyone at the beginning of trading. In the last session, silver had closed at around ₹ 2,32,495 per kg, but as soon as the market opened on Monday, it fell sharply to ₹ 2,29,651 per kg. That means the shine of silver has reduced by about ₹ 2,800 per kg in one stroke. If compared with its all-time high of ₹4,39,337 per kg, silver is currently trading around ₹2.09 lakh below its record level.

Gold also became cheaper, heartbeats of investors increased

Along with silver, softening of gold prices is also being seen. Gold had closed at ₹ 1,49,680 per 10 grams on the previous trading day, which opened at ₹ 1,48,298 per 10 grams on Monday with a fall of ₹ 1,382. This reduction in gold prices is a relief news for those who were planning to invest or buy jewellery. Let us tell you that gold has now become cheaper by about ₹ 54,686 from its record high of ₹ 2,02,984 per 10 grams.

Why are prices falling? Know the real reason

It is often seen that the prices of gold and silver increase during times of tension or international turmoil in the Middle East, but this time the case is the opposite. Despite Donald Trump’s statements and global tensions, precious metals remain under pressure. According to experts, crude oil prices have reached around $110 per barrel and the US dollar is also continuously strengthening. Due to the strength of the dollar, investors are giving more priority to cash instead of safe haven, which is having a direct impact on gold-silver rates.

What next for investors?

Market experts say that this fall in prices can prove to be a great opportunity for long term investors. However, market movements are still quite volatile and there may be further changes in prices depending on global cues. In such a situation, it can be beneficial for you to keep a close eye on price fluctuations and international news before making any big investment.