Gold and Silver Prices Continue to Fall in Jalgaon; Investors Watch Market Closely
Precious Metals Extend Losses Amid Strong Dollar and Interest Rate Concerns
Jalgaon: Gold and silver prices continued their downward trend in Jalgaon’s bullion market on Monday, providing relief to buyers and jewellery customers. After witnessing a sharp decline on Saturday, both precious metals recorded further losses at the start of the new trading week.
Market experts attribute the fall to global economic developments, expectations of interest rate hikes in the United States, and the strengthening of the US dollar, all of which have put pressure on precious metal prices.
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Why Are Gold Prices Falling?
In recent days, both international and domestic bullion markets have witnessed significant corrections in gold and silver prices. While the decline has raised concerns among existing investors, it is being viewed as a potential buying opportunity for new investors.
Analysts say that expectations of higher interest rates by the US Federal Reserve have reduced the appeal of gold as an investment. Since gold does not generate regular interest or dividend income, investors often shift toward bonds and other fixed-income assets when interest rates rise.
In addition, rising yields on US Treasury bonds and a stronger dollar have further weakened gold prices. A stronger dollar makes gold more expensive for buyers using other currencies, reducing global demand.
Geopolitical Tensions Fail to Support Prices
Although geopolitical tensions in the Middle East, particularly involving the United States, Israel, and Iran, have increased uncertainty in global markets, gold has not received the expected safe-haven support.
Market observers note that investors are currently focusing more on US monetary policy and economic indicators than geopolitical developments, limiting the positive impact such tensions would normally have on gold prices.
Silver prices have also come under pressure due to concerns over industrial demand and fears of a global economic slowdown.
How Much Did Gold Fall?
In Jalgaon’s bullion market, 24-carat gold had already declined by ₹1,236 on Saturday, bringing the price to ₹1,56,560 per 10 grams, including 3 percent GST.
On Monday morning, gold prices fell by another ₹1,339, taking the rate down to ₹1,55,221 per 10 grams (including GST).
How Much Did Silver Fall?
Silver witnessed an even steeper correction. On Saturday, prices dropped by ₹11,330 per kilogram, bringing the rate to ₹2,59,560 per kg, including GST.
On Monday, silver prices declined by a further ₹6,180, pushing the rate down to ₹2,53,380 per kilogram (including GST).
The continued decline in precious metal prices is expected to attract buyers ahead of the upcoming festive and wedding seasons, while investors remain cautious amid global economic uncertainty.
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