Precious metals like Gold and Silver have always been considered as safe haven investments during troubled times. However, as the Stock markets around the world fell, Gold and Silver too lost their defensive character. Gold, however, recovered from its low, but silver kept on falling even on the day after the trump tariff announcement.
Silver Price Movement
Silver futures on MCX opened at Rs. 99,658 on 3rd April but fell by over 5 percent to a low of 93,875 and later closed the day at 94,399, down 5.37 percent or 5,354 points. Today, silver again fell by over 1.30 percent or 1,310 points, continuing its sharp decline. However, on a Weekly time frame, it can be seen that silver is trading at an important trendline support, and it has to be seen if it will break the support or not.
Reasons for fall in Silver
Silver is a very important Metal with a wide variety of applications in several sectors and industries, including Electronics, Jewelry, health, Solar panels, etc. But because of the recent tarriffs announcement by U.S President Donald Trump, there are fears looming of a trade war which could eventually cause an economic slowdown followed by weakening of industrial demand which will also lead to fall in demand for silver.
Profit booking can also be considered as one of the reasons for the sharp fall, as silver saw a price increase of over 35 percent over the year, making a high of Rs.1,01,999 on 14th March, crossing the Rs. 1 lakh mark and outperforming several Stock market indices.
Written By Abhishek Das
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