Gold prices in India also saw a big fall, thsu the prices dropping by almost ₹6,000 in just one day.
The sudden crash that happned have surprised both the investors and even the jewellery buyers.
Silver prices also went down on the same day, which have been thus adding to the overall pressure on the precious metals market.
Shops and traders have also reported fewer buyers as people also became confused about whether prices will fall even more.
Experts have also said there are a few reasons behind this fall. One major reason is that global markets are weak right now.
The US dollar has also become stronger, and even the interest rates in many countries may go up again.
When all this have happened, gold usually becomes less attractive because the investors usually prefer safer or interest-earning options.
At the same time, the Indian rupee became slightly stronger, which made the overall imported gold cheaper. This also have caused domestic prices to drop faster.
Because of the sudden fall, many traders have also started selling gold to avoid losses, which thus pushed the prices down even further. Silver’s price have also dropped as the global industrial demand slowed down.
Even though the fall looks very scary, many experts still feel this may just be a short-term correction.
India’s gold demand usually increases during the wedding season and festivals, which could support prices again in the coming weeks. Gold is also still seen as a safe investment during uncertain times, so long-term buyers may return soon.
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