Gold and silver. Price fall was further
supported by a technical correction..!
Satish Dondapati, Fund Manager,
Kotak Mutual Fund
Views on Gold & Silver prices from Mr. Satish Dondapati, Fund
Manager, Kotak Mutual Fund:
“Today, gold and silver prices witnessed a sharp selloff, falling around
5% and 11% respectively (in USD).
The decline began after both metals are trading close to all-time highs.
The main reason for the selloff was the strengthening of the US dollar,
which rose by about 0.30%, putting pressure on gold and silver prices.
Investors also felt that the recent rally was stretched and unsustainable,
leading to profit-booking at higher levels.
In addition, weakness in the equity market triggered selling across
other asset classes, including gold and silver.
The fall was further supported by a technical correction, as prices had
risen very quickly in a short period, making the market overheated.
Expectations that the US Federal Reserve may remain hawkish or slow down
rate cuts also reduced the appeal of non-interest-bearing assets like gold and
silver.”
