For the first time after Diwali, Delhi’s bullion opened and gold and silver prices were seen rising in the country’s capital. According to the data, a fall of Rs 6,800 was seen in the prices of gold on Friday. On the other hand, a fall of more than Rs 17 thousand has been seen in the prices of silver. In fact, the effect of fall in the prices of gold and silver in the international market has also been seen in the Delhi bullion market. Due to which there has been a decline in the prices of gold and silver in Delhi. If experts are to be believed, we may see a fall in the prices of gold and silver in the coming days also.
Gold and silver collapse in Delhi
According to All India Bullion Association, gold prices in the national capital fell to Rs 1,25,600 per 10 grams on Friday amid weak trend in the international market. Gold with 99.9 percent purity had closed at Rs 1,32,400 per 10 grams on October 18. This means that there has been a decline of Rs 6,800 per ten grams in the prices of gold. Gold with 99.5 percent purity came at Rs 1,25,000 per 10 grams (including all taxes). On Saturday it closed at Rs 1,31,800 per 10 grams. There has also been a decline of Rs 6,800 per 10 grams.
Silver prices fell by more than 17 thousand
In the local bullion market, silver prices also fell to Rs 1,52,600 per kg (including all taxes) on Friday. In the last market session it had closed at Rs 1,70,000 per kg. This means that silver prices have seen a fall of Rs 17,400 per kg on Friday. The association said that local bullion markets reopened on Friday after being closed for four days amid Diwali festivities. In the international market, spot gold fell by $ 38.47 or 0.93 per cent to $ 4,087.55 an ounce on Friday, compared to a rise of 0.67 per cent in the previous session. In foreign markets, spot silver fell by 1.66 percent to $ 48.12 an ounce.
Why did it decline so much?
Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said that gold continued to improve on Friday as the market entered a correction phase from a bullish trend. After heavy selling at the beginning of the week, traders are cautious and are avoiding new purchases. Gandhi said many markets in India are closed due to the holiday season, and after the conclusion of the Diwali festival, demand in India, the world’s second-largest gold consumer, is expected to decline. He said that due to reduced geopolitical tension, pressure is being seen in gold prices. In fact, a meeting between US President Donald Trump and Chinese counterpart Xi Jinping is scheduled for October 30.
Why could there be further decline?
Meanwhile, the Trump administration’s decision to impose sanctions on the largest Russian oil companies has underlined the fact that geopolitical concerns will persist for a long time, said Praveen Singh, head of commodities and currencies at Mirae Asset Share Khan. Singh said gold is likely to trade between $4,000-4,200 an ounce in the near term, as expectations of interest rate cuts by the US Federal Reserve limit the downside. Jatin Trivedi, Vice President Research Analyst – Commodity and Currency, LKP Securities, said the market is expected to remain cautious due to the ongoing US government shutdown and uncertainty over trade talks.