Gold drops ₹600 to ₹99,960/10 gm; silver breaks ₹2,000 per kg should investors worry

Gold and silver prices in India have recently seen a sharp decline. On Tuesday, gold fell by ₹ 600 to ₹ 99,960 per 10 grams, while silver fell by ₹ 2,000 to ₹ 1,22,500 per kg. This decline has come not only due to domestic but also international signals.

But the question is - why did this happen? Is this just a temporary decline or the beginning of a big trend? Let's understand in detail.

Price decline statistics: What has changed?

Metal Previous price New price Fall

Gold	Rs.1,00,560	₹99,960	Rs.600
Silver	Rs.1,24,500	₹1,22,500	Rs.2,000

According to data from MCX (Multi Commodity Exchange) and local markets, this decline is not limited to the spot market. The same trend has been seen in futures trading as well.

 Global factors: What is happening in the international market?

Strength of the dollar: With the strengthening of the US dollar, investors have shifted their interest from gold to other assets.

US Fed's stance: The Federal Reserve has indicated that interest rates may remain high for some time. This makes gold less attractive as it does not give interest.

Rise in bond yield: The rise in US bond yield means that investors are now looking towards bonds instead of gold for returns.

Expert Comment:

"Until the Fed's policy is clear and global uncertainty persists, volatility in gold prices will continue," — Rohit Jain, Senior Analyst, Motilal Oswal Financial Services

🇮🇳 3. Domestic reasons: What was the impact in India?

Weak Rupee: The rupee has also weakened against the dollar, which makes imported gold expensive. But despite this, the fall in prices is an indication that demand has weakened.

Decline in Jewellery Demand: Due to fewer wedding ceremonies in the month of June and the onset of monsoon season, there has been a slowdown in the demand for jewellery.

GST and Custom Duty: There is uncertainty in the market as the government has not announced any new duty or tax policy.

What does this decline mean for investors?

Opportunity for new investors: If you want to invest in gold for a long time, then this decline can be a good entry point for you.

Relief to SIP investors: Those who have done SIP in Sovereign Gold Bonds or Gold ETFs need not panic due to this decline. The market keeps improving.

More volatility in silver: The price of silver also depends on industrial demand, so the decline in it can be comparatively faster.

Future Trend: What will be the direction of gold and silver?

Short Term Gold Silver

Support Level ₹98,800/10g ₹1,20,000/kg

Resistance Level ₹1,01,500/10g ₹1,26,000/kg

Future Trend Sideways / Downward Volatile / Downward

Analysts believe that if the dollar remains strong and the Fed's signals remain the same, then the prices of gold and silver may fall further. However, any geopolitical tension or fall in the stock market may lead to a rise in their prices again.

The current fall in gold and silver is a sign that the market is not completely stable yet. But every fall is also an opportunity - especially for those who want to invest for the long term.

Things to keep in mind:

It is safer and more convenient to buy gold in digital form rather than physical form.

Invest according to your financial goals - like marriage, children's education or retirement.

Don't forget to take expert advice, especially if you are investing in gold for the first time.