MCX, Vedanta shares fall too; Nifty Metal index falls over 3.5% on March 23
The decline comes amid a stronger dollar, which has emerged as one of the clearest 'safe-haven' winners
After a meteoric 278% rally to $121/oz, silver suffered its second-worst crash in history—but analysts say the bull market isn't over yet.
Spot gold fell 2.5% to $4,838.81/oz, pulling back from a near one-week high earlier in the session. US gold futures (April) slipped 1.9% to $4,855.60/oz. Spot silver crashed 14.9% to $74.94/oz, after touching a record high of $121.64 last week.
Silver spot prices fell sharply, but physical silver still trades at high premiums, signaling strong demand amid claims of market manipulation and heavy leverage.
Gold futures with April expiry on MCX, which fell to Rs 1,37,065 per 10 grams earlier during the day, recovered more than 9 percent to recover all losses and trade at Rs 1,49,920 per 10 grams
The precious metals, viewed as safe-haven investments, had already begun sliding on reports, later confirmed, that Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank.
An average solar panel of approximately 2 square metres can use up to 20 grams of silver and utilise 3.2- 8 grams per square metre.
Silver’s rally is being driven by a structural supply deficit and surging industrial demand, marking a decisive break from its traditional linkage with gold.
Gold and silver price in the domestic market dip marginally.
As trade tensions across the globe soften, the demand for silver's safe-haven appeal lost luster, leading the metal's prices to fall eight percent from highs.
Silver prices have jumped over 60 percent this year, making investors weigh ETFs, physical metal, and equities.
On Monday, the precious metal ended at Rs 79,000 per 10 grams.
Gold prices jumped by Rs 500 to an all-time high of Rs 81,500 per 10 grams while silver surged Rs 1,000 to Rs 1.02 lakh per kg.
However, as the dollar softened, gold found support and rose from USD 2,640 to USD 2,655,” Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, said.
The precious metal had closed at Rs 72,800 per 10 grams in the previous session
Recent data revealed a jump in the U.S. unemployment rate to 4.3 percent in July, increasing expectations that the Federal Reserve might cut interest rates by up to 50 basis points in September.
Traders are also eyeing upcoming US employment data, including the critical non-farm payrolls report due on Friday, which could provide further insights into economic resilience.
According to All India Sarafa Association, gold of 99.9 per cent and 99.5 per cent purity edged up Rs 50 each to Rs 70,700 and Rs 70,350 per 10 grams, respectively.
On the Multi Commodity Exchange, silver contracts for September delivery plummeted Rs 2,944 or 3.47 per cent to Rs 81,950 per kg in a business turnover of 27,605 lots.
According to All India Sarafa Assocation, the precious metal rates had closed at Rs 76,400 per 10 grams in the previous session.
The yellow metal had settled at Rs 72,550 per 10 grams in the previous trade.
The precious metal had ended at Rs 72,150 per 10 grams in the previous session.
In the previous session, the precious metal had closed at Rs 72,450 per 10 grams.