A decline in gold prices has been seen again in the country’s capital Delhi. The real reason for this decline is the signal of rate cut pause received from the Fed in December, the increase in trade talks between America and China and the rise in the dollar index. Where a fall of Rs 1000 was seen in the prices of gold in the country’s capital Delhi. On the other hand, there has been an increase in the price of silver. After which the price of silver has reached Rs 1.55 lakh. However, silver prices are currently at levels much below their peak. Let us also tell you what the price of gold has become in Delhi.
Gold is cheap, silver is expensive in Delhi
According to All India Bullion Association, gold prices in the national capital on Thursday fell by Rs 1,000 to Rs 1,23,400 per 10 grams amid a strengthening dollar after the Federal Reserve indicated slow pace of interest rate cuts and progress in US-China trade talks. Whereas gold with 99.5 percent purity fell by Rs 1,000 from Wednesday’s closing price of Rs 1,23,800 per 10 grams to Rs 1,22,800 per 10 grams (including all taxes). In the local bullion market, gold of 99.9 per cent purity had closed at Rs 1,24,400 per 10 grams in the last session.
Gold prices fell on Thursday following sharp comments by Federal Reserve Chairman Jerome Powell at the press conference after the policy announcement. However, silver prices on Thursday rose by Rs 3,300 to Rs 1,55,000 per kg (including all taxes). According to the association, on Wednesday this white metal closed at Rs 1,51,700 per kg.
Why did gold become cheaper in Delhi?
Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said the US Central Bank cut interest rates by a quarter point as expected, but hinted that market expectations of another rate cut at the upcoming December meeting may be premature. Gandhi further said that this development led to an increase in US bond yields and the dollar, which increased pressure on bullion. Analysts say the easing of tensions between Washington and China following President Donald Trump’s comments on a possible trade deal with President Xi Jinping has further impacted gold’s appeal as a safe investment.
Why did the foreign markets rise?
In the international market, spot gold rose by $ 53.26, or 1.36 percent, to $ 3,983.87 an ounce, snapping a four-day losing streak. Spot silver in foreign markets increased by 1.21 percent to $ 48.14 an ounce. Meanwhile, the dollar index, which gauges the dollar’s strength against six currencies, rose 0.12 per cent to 99.34, putting pressure on the yellow metal. Jatin Trivedi, Vice President Research Analyst (Commodity and Currency), LKP Securities, said that a slight increase was recorded in gold prices on Thursday.
This trend comes after US President Donald Trump hinted at allowing nuclear weapons testing, while other countries are also pushing for nuclear tests, raising the risk level. Regarding the market outlook, experts said traders are waiting for further signals from the upcoming speeches of Federal Reserve officials for clarity about the interest rates scenario and the direction of bullion in the near future.