The rise in crude oil and dollar index has completely spoiled the game of gold and silver. Despite geopolitical tension, a decline is being seen in the prices of gold and silver. On Tuesday, the price of gold has fallen by Rs 1800 in the country’s capital Delhi. On the other hand, the price of silver has fallen below Rs 2.50 lakh. According to experts, the policy meeting of the Federal Reserve is being held in America from Tuesday. This will be Jerome Powell’s last meeting as president. After that, a meeting will be held under the leadership of Kevin Varsh in the month of June. According to experts, this time also there is no possibility of any change in the policy rate in the Fed Reserve. Due to which there is pressure in the prices of gold and silver. Let us also tell you what the prices of gold and silver have become in the country’s capital Delhi…
Gold and silver prices became cheaper
On Tuesday, gold prices in the national capital fell by Rs 1,800 to Rs 1.54 lakh for 10 grams, while silver fell by Rs 6,500 to Rs 2.44 lakh for 1 kg. The reason for this was the rise in crude oil prices again and the strong US dollar, which shook the global bullion markets. According to the All India Bullion Association, the yellow metal of 99.9 per cent purity fell by Rs 1,800, or 1.15 per cent, to Rs 1,54,300 (including all taxes) for 10 grams. On Monday, this metal closed at Rs 1,56,100 for 10 grams. Silver prices also fell by Rs 6,500, or about 3 per cent, to Rs 2,44,000 (including all taxes) for 1 kg. In the last market session, this white metal had closed at Rs 2,50,500 for 1 kg.
Why did gold and silver become cheaper?
Gold fell to a three-week low on Tuesday as rising energy prices raised inflation concerns and strengthened expectations of higher interest rates for a longer period of time, said Saumil Gandhi, senior commodity analyst at HDFC Securities. Rising inflation expectations have strengthened confidence in a tighter policy stance, pushing bond yields higher. He further said that as a result, this situation puts further downward pressure on prices. Gandhi said traders were also seen reducing their positions ahead of decisions by major central banks, including the US Federal Reserve, which added further downward pressure on prices.
Pressure in international also
In the international market, spot gold fell $95.37, or 2.04 per cent, to $4,586.50 an ounce, while silver fell $2.33, or 3.09 per cent, to $73.18 an ounce. Praveen Singh, head of commodities at Mirae Asset Sharekhan, said that spot gold was down more than 1 percent and was trading around $ 4,580 an ounce. This happened because crude oil and dollar continued to rise. The reason for this is believed to be the reports according to which President Donald Trump was unhappy with Iran’s latest proposal; This proposal reportedly included postponing nuclear talks.
He further said that due to this, inflation concerns and reduced expectations of interest rate cuts by the US Federal Reserve are strengthening the dollar, while putting pressure on precious metals. Singh said that investors will also keep an eye on important economic data of America. These include ADP’s weekly employment data and the Conference Board’s consumer confidence data, which are scheduled to be released later today.
