gold Silver
The distance from the country’s capital Delhi to America is about 12 thousand kilometers. Where there is some movement. Its effect can be seen here. Well, here we are not talking about politics. Here we are talking about gold and silver. According to experts, there are chances of no change in interest rates till May i.e. as long as Fed Chairman Jerome Powell remains in the chair. Due to which the prices of gold and silver may remain under pressure. After that, after the arrival of Kevin Warsh in the month of June, a huge decline in interest rates may be seen. Due to which we may see a rise in the prices of gold and silver. With this hope, there was a rise in the prices of gold and silver from the international market to the bullion market of Delhi. However, for the past few days, there has been a lot of fluctuation in the prices of gold and silver in Delhi. Let us also tell you what the prices of gold and silver have become in the country’s capital Delhi…
Gold and silver prices in Delhi
According to the All India Bullion Association, silver prices rose by Rs 4,000, or 1.5 per cent, to Rs 2,68,500 per kg (including all taxes) from Tuesday’s closing price of Rs 2,64,500 per kg. Gold with 99.9 percent purity was also bought heavily by traders, due to which its price increased by Rs 600 or 0.4 percent to Rs 1,61,300 per 10 grams (including all taxes). In the last session, it had closed at Rs 1,60,700 per 10 grams. In global markets, spot silver rose US$4.71, or about 6 per cent, to US$85.51 an ounce, while gold traded 1.06 per cent higher at US$5,078.72 an ounce.
Why did gold and silver become expensive?
Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, said gold and silver prices rose on Wednesday due to rising expectations of more aggressive interest rate cuts by the Federal Reserve. He further said that this rise has come after weak economic data from the US, as retail sales in December fell short of forecasts, indicating a slowdown in consumer spending and adding to concerns about a slowdown in growth. Gandhi said that after the release of market data, the probability of the Fed cutting interest rates three times this year has increased, which was two a week ago. The scenario of reduction in interest rates is favorable for non-profitable metals like gold.
There may be further increase
Praveen Singh, Head of Commodities, Mirae Asset Sharekhan, said spot gold prices witnessed a rise on Wednesday due to the weakening of the US dollar as investors await the crucial US non-farm wages data (January) to be released later today. The results of the data are likely to cause huge fluctuations in the prices of precious metals in foreign markets. On the geopolitical front, Gandhi said that renewed tensions have also strengthened the demand for precious metals as safe investments. In recent developments, Washington is reportedly considering blocking tankers carrying Iranian crude oil and may deploy additional naval resources if talks over Iran’s nuclear program fail.