The Indian stock market remained quite volatile on Thursday. There was a lot of ups and downs in the market. Meanwhile, gold prices also fell today. Gold prices fell by about 3 percent in the futures market. But meanwhile, not only in gold but also in gold and silver ETFs i.e. Gold ETF and Silver ETF, there was a decline. Gold and silver exchange-traded funds fell up to 4 per cent. At 12:45 pm, Nippon India Silver ETF fell 4.04 per cent, while Tata Silver Exchange Traded Fund was down 4.11 per cent. Among gold ETFs, Tata Gold ETF fell 2.01 per cent, Nippon India ETF Gold BeeS fell 2.22 per cent and ICICI Prudential Gold ETF fell 2.16 per cent.
Amid the huge fall in futures prices on COMEX, there was a big fall in the futures contracts of gold and silver on MCX. The prices of both the precious metals fell because the fear of rising inflation had arisen due to the intensification of the ongoing military conflict in West Asia. This increased concerns that central banks around the world may stop cutting interest rates or even increase them.
On MCX, the June gold deal fell by 3 per cent to Rs 1,48,981 per 10 grams, while the May silver deal fell by almost 6 per cent to Rs 2.29 lakh per kg. Hindustan Zinc shares fell more than 3 percent to Rs 506.9 per share. This company is the largest silver manufacturing company in the country. Shares of Hindustan Zinc's promoter company Vedanta also fell by 2 percent.
In the global market, spot gold fell 2 percent to $ 4,664.39 an ounce, breaking the trend of four consecutive days of growth. At the same time, American gold futures deals fell 2.5 percent to $ 4,691.10 an ounce. This fall in the prices of precious metals came after US President Donald Trump's statement in which he said that America will continue its military campaign in Iran in the coming weeks. Due to this, the prices of crude oil increased and the hopes of cutting interest rates were weakened.
In his address late on Wednesday night, Trump said that America will attack Iran in the next two to three weeks and is close to achieving its main strategic goals. Following this statement, the 10-year US Treasury yield and the dollar index moved up, putting pressure on gold prices. Meanwhile, Brent crude oil prices rose more than 6 percent on supply concerns following signs of continued attacks on Iran's energy infrastructure. Normally, higher interest rates put pressure on gold as they increase the cost of holding this investment with no fixed income.
