Gold and silver prices rose after many fluctuations last week, but on Monday, the first trading day of the week, both the precious metals fell with the commencement of futures trading on the Multi Commodity Exchange i.e. MCX. Although gold seemed to be in recovery mode for a while after opening in the red, it fell again the next moment. However, as the silver trade picks up, the decline appears to be accelerating. The price of 1 kg of silver fell by Rs 1,400 and after this decline in price, silver futures became even cheaper than its high level.
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Change in gold movement
Silver expiring on September 4 and gold expiring on August 5 opened lower as MCX futures began trading. As compared to the previous closing price of Rs 1,47,378 per 10 gram, the precious yellow metal opened lower at Rs 1,47,135 and later recovered from the fall to surge to Rs 1,47,509 but was trading in the red again after half an hour of trading at the time of writing.
Sharp drop in silver prices
While gold’s move in futures trading was surprising, silver futures prices began to fall after opening in the red. If we look at the MCX silver price, compared to last Friday’s close of Rs 2,37,410, the silver price opened lower and after some time fell sharply to Rs 2,36,001 per kg. This means that silver fell by Rs 1,409 in one fell swoop.
Following Monday’s latest decline, gold and silver prices fell further below their highs in futures trading. Let us recall that in early January of this year Gold-Silver reached a high level, breaking all its records. While gold crossed the Rs 2 lakh per 10 gram mark for the first time, silver made history by crossing the Rs 4 lakh per kilogram level. However, after this, both were seen constantly falling from heights.
Gold and silver sparkled last week
Where the new week began with falling prices for gold and silver. Note that last week, after some fluctuations, prices for both metals went up. On June 26, the price of 10 gram 24 carat gold was Rs 1,44,162 and last Friday’s closing price was Rs 1,47,378.
As for silver, its price also increased in the past week and as against the closing price of Rs 2,23,472 per kg on June 26, the precious metal closed at Rs 2,37,410 per kg on Friday, the last trading day of last week.
(Note: Before investing in a gold-silver or gold-silver ETF, be sure to consult with experts.)
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