The reasons why gold and silver fall sharply

Panic-selling: Speculators also turned panicky and offloaded their position in futures market as fear heightened that the global economy could sink back into a recession.

Lack of physical demand from India: India, which is the largest buyer of gold and silver, also abstained from buying precious metal due to on-going ‘shradh’. Many Indians are very particular about the dates when they buy precious metal. According to Hindu mythology ‘Shradh’ is considered to be an unauspicious event (when one’s ancestors are remembered), during which nobody buys gold. Lack of physical demand is also one of the main reasons; the price of gold went down.

Silver generally follow its cousin, gold. So, if gold is moving down, it dampens the trading sentiment for silver as well.

GoodReturns.in

1 2 3

Tags: Gold analysis, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, Gold price forecast, gold prices, Silver price, silver prices

Posted by VBN on Sep 25 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry