Silver Price Crash: Monday, February 2 was no less than a tsunami for the bullion market. There has been huge volatility in the prices of gold and silver on the very first trading day of the week. For those investors and common buyers who were disappointed after seeing skyrocketing prices for some time, today's figures are surprising. As soon as the market opened, the shine of silver faded and gold also took a huge dive from its record level. The bullion market, which is trading in the red on MCX, has increased the heartbeats of investors today.
The fall in silver prices is not normal, rather it is being seen as a big 'crash'. If we look at the data, a huge fall of Rs 31,878 was recorded in silver on Monday. This fall is about 12 percent, which is considered to be the biggest fall in recent times.
After this huge fall, the price of 1 kg silver has fallen to Rs 2,33,774. It is worth noting that there was a slowdown in silver for the last few days, but this fall on Monday has changed the entire equation of the market. Silver, which was touching new heights till some time ago, has now become cheaper by Rs 186,000 from its all-time high.
This trend of decline was not limited to silver only, but a major weakness was seen in gold also. Gold price on MCX fell by Rs 6,045. After this fall of about 4.47 percent, gold is now trading at the level of Rs 1,38,800 per 10 grams.
If we look at the trend of the last one year, gold and silver had given tremendous returns to the investors. Prices were continuously setting records, due to which a perception was created in the market that the rise was not going to stop. Even in the month of January, due to global tension and currency fluctuations, investors considered gold and silver as the safest investment, but today's fall has surprised even experienced traders.
The biggest reason behind this sudden fall in the market is the news coming from America. On Friday, it came to light in the market that US President Donald Trump is planning to nominate Kevin Wersh for the post of Federal Reserve Chairman.
The effect of this news was that the US dollar suddenly became stronger in the international market. The strength of the dollar is considered a negative sign for the bullion market. Traders who expected the dollar to remain soft and gold and silver to rise, their sentiments weakened. Amidst the ongoing discussions regarding the policies of the Federal Reserve, the strength of the dollar has put deep pressure on the prices of gold and silver. Experts say that this pressure may continue for a few more days.
