Silver and Gold Price: After a sharp rise amid weak global trends, investors booked huge profits in gold and silver today, due to which there was a big fall in the prices of both the precious metals on Monday. On Monday, silver prices fell nearly 3 percent from the record high to Rs 2.32 lakh per kg in futures trade. In a highly volatile session on Monday, silver hit a new record of Rs 2,54,174 per kg in early trade, after which investors suddenly started vigorous profit booking. Today, silver futures fell by Rs 7124 (2.97 per cent) to hit a low of Rs 2,32,663 per kg on the Multi-Commodity Exchange (MCX). Last week, silver prices on MCX had increased by 15.04 percent (Rs 31,348).
Gold also came under the grip of profit booking
Like silver, gold also opened at a higher price today, but due to profit booking its gain also turned into loss. Gold prices today declined after 4 consecutive days of rise. On Monday, the futures price of gold fell by Rs 1497 (1.07 percent) to Rs 1,38,376 per 10 grams. On Friday, it had reached a new record high of Rs 1,40,465 per 10 grams. “Gold and silver prices fell from record highs in the European trading session on Monday as traders booked profits after the record-breaking surge,” said Saumil Gandhi, Senior Analyst (Commodity), HDFC Securities.
A signal of caution for gold and silver investors
Saumil Gandhi said that both gold and silver are in overbought territory on higher time frames, which is a cautionary sign and a good correction is needed before the rally continues. “We expect further correction pressure on bullion prices as investors adjust and rebalance positions at month and year end,” he said. Apart from this, the price of silver on Comex also fell by $ 3.49 (4.51 percent) to $ 73.71 an ounce. Earlier in the session, silver futures had breached the $80 an ounce mark for the first time, rising $5.47 (7.09 per cent) to hit a record high of $82.67 an ounce. Meanwhile, gold for delivery in February was also trading at $ 4480.15 an ounce, down by $ 72.55 (1.59 percent).
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