Business Desk. The futures market is witnessing a significant fall in the price of gold and silver on Tuesday. At 9:13 am on Tuesday morning, gold futures on June 5, 2020, fell by Rs 401 to Rs 45,790 per 10 grams on the MCX exchange. At the same time, on Tuesday morning at 9:41 am, the gold futures price of five August 2020 was falling by Rs 414 to Rs 45,939 per 10 grams on MCX. Due to the nationwide lockdown till May 3, the gold and silver spot markets in the country will remain closed on Tuesday.
The futures prices of silver along with gold were seen declining on Tuesday morning. On Tuesday morning, silver futures of May 5, 2020, fell by 1.02 percent, or Rs 430, on MCX at Rs 41,527 per kg. Apart from this, on Tuesday morning, silver futures on MCX was down by 0.90 percent or Rs 384 to trade at Rs 42,136 per kg on July 3, 2020.
Talking about the international market, there is also a drop in gold spot and futures prices on Tuesday morning. According to Bloomberg, the global spot price of gold was down 1 percent, or $ 17.11, at $ 1,696.88 an ounce on Tuesday morning. At the same time, the global futures price of gold was trading at $ 1710.70 an ounce, falling 0.76 percent or $ 13.10 on Comex on Tuesday morning. Besides, the global spot price of silver was down by 1.01 percent, or $ 0.15, on Tuesday morning at $ 15.05 an ounce.
What is the futures price?
Gold is traded in two ways. One in the spot market and the other in the futures market. The futures market is also called a commodity exchange. Commodities are sold and purchased digitally in the futures market. In the futures market, deals are made in future prices based on the old and new prices of the commodity. There are deals in this market up to a fixed date. The futures market has a direct impact on the spot market. There is no major difference in commodity prices between the spot market and the futures market.