gold and silver
A huge fall in the prices of gold and silver has been recorded in the bullion market of Delhi on Friday. The upcoming 19th April is the holy festival of Akshaya Tritiya, on which purchasing of precious metals is considered very auspicious. At a time when customers’ eyes were fixed on the market, the huge fall in gold prices by Rs 1,600 and silver by Rs 5,700 has shocked everyone. This softening has occurred due to sluggish demand at the domestic level, which has brought great relief to the budget of common buyers.
The movement of futures market is completely different from that of spot market.
Even though there is a sluggish environment in the spot market, the story of the futures market seems different. A jump of 1.72 percent was recorded in silver futures deals on Multi Commodity Exchange (MCX), due to which its price increased by Rs 4,197 to Rs 2,52,800 per kg. On the other hand, a slight increase was also seen in the futures price of gold. It was trading at Rs 1,53,543 per 10 grams with a marginal rise of 0.24 per cent or Rs 391. There is a slight positive trend in both these precious metals in foreign markets also.
Why are prices falling?
Geopolitical tension and dollar game: Generally, whenever there is a situation of war or tension in the world, the demand for gold as a safe investment starts skyrocketing. But this time the equations are reversed. Despite the tension between America, Israel and Iran that started in the Middle East from February 28, gold prices have fallen by about 8 percent. The biggest reason behind this is the continuously increasing strength of the US dollar. Apart from this, the hopes of cutting interest rates by the Central Bank of America i.e. Federal Reserve have also faded. Gold’s shine often increases when interest rates fall, but at present this does not seem to be happening.
Gold is Rs 1,56,200 per 10 grams
In the capital Delhi, the price of gold of 99.9 percent purity has now fallen by Rs 1,600 to Rs 1,56,200 per 10 grams. Jatin Trivedi, VP Research Analyst of LKP Securities, believes that many important economic data are to be released at the end of this week, due to which the movement of gold is likely to remain in a limited range. At present, a kind of consolidation is being seen in the market.
In India, gold is not just a metal but a symbol of emotions and traditions. From last year’s Akshaya Tritiya till this year, gold has filled investors’ pockets with excellent returns. For those who do not want to buy jewelery directly, experts are considering Gold ETF (Exchange Traded Fund) as a great option. These ETFs, which can be easily purchased from home, require only a demat account. It is also safe and there is no hassle in storing it.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
