A fall in silver prices was seen in the country’s capital Delhi on the first trading day of the week. According to experts, there are three main reasons behind this decline. The first reason is the rise in the dollar index. On the other hand, silver has become cheaper due to decrease in purchasing and demand. Besides, the closure of the Chinese market due to Lunar New Year holidays has also affected the prices of gold and silver. On the other hand, an increase in gold prices has been seen. Due to which the prices of gold have reached close to Rs 1.60 lakh. Let us also tell you how the figures of gold and silver prices are being seen in the country’s capital Delhi.
Gold and silver prices in Delhi
On Monday, silver prices in the national capital fell by 2 percent to Rs 2.5 lakh per kg, while the price of gold increased by Rs 700 per 10 grams. According to All India Bullion Association, the price of white metal (gold) was Rs 2,55,000 per kg on Friday, falling by Rs 5,000 or 1.96 per cent to Rs 2,50,000 per kg (including all taxes). However, the price of gold of 99.9 per cent purity increased by Rs 700 to Rs 1,59,200 per 10 grams (including all taxes) from the previous closing price of Rs 1,58,500 per 10 grams.
Prices fell in foreign markets also
In the global market, spot silver fell nearly 1 percent to US$76.94 an ounce, while gold fell US$40.10, or 1 percent, to US$5,003.01 an ounce. Gaurav Garg, Research Analyst, Lemon Markets Desk, said that after the weekend’s rise, silver prices started with a decline due to profit booking by investors. However, continuous purchases by central banks, increasing demand for safe investments amid decline in technology and AI stocks and weakening of the dollar index have helped in mitigating the fall to some extent.
Due to reduction in gold and silver
“Gold prices declined marginally on Monday as a slight improvement in the US dollar and reduced buying kept the precious metal under pressure,” said Saumil Gandhi, senior commodity analyst at HDFC Securities. He said that business activities remained sluggish due to the closure of the Chinese market due to Lunar New Year holidays. Chinese traders have been instrumental in the recent volatility, especially in silver prices, and their absence made the market situation even more vulnerable.
Kainaat Chainwala, AVP Commodity Research, Kotak Securities, said traders are now focusing on key macro data releases, including the US Federal Reserve’s favorite inflation index – the Personal Consumption Expenditure (PCE) Price Index, which will be released on February 20 and may influence expectations of interest rate cuts in June. He further said that the minutes of the Federal Open Market Committee meeting, advance US GDP data for December and flash PMI readings of major economies will also be monitored for further direction.