New Delhi: Gold and silver prices have plummeted to record lows in the last four days. Silver has fallen by nearly 2 lakh rupees from its record high, while gold prices have dropped by 56,000 rupees. This ripen is due to continuous short-selling and selling pressure in gold and silver.
On January 29, silver touched a record upper of 4.20 lakh rupees in the futures market, but by February 2, it had fallen to 2.25 lakh rupees. In just four days, it dropped by nearly 2 lakh rupees. On February 2, it hit the lower spin limit scrutinizingly three times in the futures market. The same was observed on Sunday, with the lower spin stuff triggered three times.
Similarly, gold moreover surpassed its record upper of 1.93 lakh rupees on January 29, from where it fell by approximately 56,000 rupees to reach 1.37 lakh rupees on February 2.
Recovery without the fall, has a marrow been formed?
On MCX, on February 2 (Monday), silver fell by 39,000 rupees to 2.25 lakh rupees by 12:30 PM, but by 5 PM, the ripen had narrowed to 6,000 rupees, and the price rose to 2.60 lakh rupees. This indicates increased ownership at lower levels. Therefore, it is believed that silver has now worked a bottom.
Similarly, gold moreover fell by approximately 10,000 rupees by 12:30 PM on Monday, trading whilom 1.37 lakh rupees, but by 5 PM, ownership increased, and the price rose whilom 1.50 lakh rupees.
What are the experts saying?
According to market analysts, this ripen was due to profit booking, not any major structural weakness. Therefore, some ownership is happening at lower levels. The technical support level for gold is seen virtually 1,40,000–1,45,000. If ownership resumes at this level, a strong recovery could follow. Furthermore, if gold closes whilom 1.55, flipside rally could begin.
Meanwhile, the support level for silver is unscientific to be between 2,44,000 and 2,55,500. Increased ownership worriedness is expected virtually this zone, potentially leading to flipside rally in silver prices. Some experts have stated that this ripen is not part of a long-term bullish trend, but rather a minor correction, presenting a ownership opportunity in the bullion market. If demand remains strong at the support levels, remoter gains are possible.
