Gold, Silver Prices Fall Sharply in Futures Trade Amid Weak Demand
Precious metals decline on MCX as investors trim positions, with gold down Rs 1,593 and silver plunging Rs 6,057.
Gold and silver prices declined sharply in futures trade on Thursday as investors reduced their positions amid weak domestic demand and mixed market sentiment.
On the Multi Commodity Exchange (MCX), gold contracts for August delivery fell by Rs 1,593, or 1.04 per cent, to Rs 1,52,286 per 10 grams, with a business turnover of 819 lots.
Analysts attributed the decline in gold prices to weak spot demand and subdued market cues.
Silver prices also witnessed a significant fall, with contracts for July delivery dropping by Rs 6,057, or 2.41 per cent, to Rs 2,45,750 per kilogram. The contracts recorded a business turnover of 1,690 lots on the MCX.
Market experts said the sharp decline in silver prices was mainly due to a sell-off by participants who reduced their bets in the precious metal.
In the international market, however, both precious metals traded higher. Gold futures rose 1.37 per cent to USD 4,315.14 per ounce in New York, while silver gained 1.65 per cent to USD 69.05 per ounce.
The contrasting trend between domestic and global markets reflects cautious sentiment among local traders despite strength in international bullion prices.