Gold and silver prices fell again today
The trend of falling gold prices is showing no sign of stopping. Gold prices are continuously coming down due to Dhanteras. This fall is very important, because since then gold has become cheaper by about Rs 7600 per 10 grams. This slippage continued on Tuesday, October 28, due to which the precious metal has further lost its shine. Today, in the bullion market of the capital Delhi, the price of gold of 24 carat purity has fallen to Rs 123420 per 10 grams.
Why is the shine of gold fading?
after all gold What is the reason for this continuous decline in prices? Experts are seeing a mixed effect of many international and domestic factors behind this. This is not a single reason, but is the result of situations developing simultaneously on many fronts.
The biggest reason is the reduction in trade tension between America and China. Expectations of improvement in trade relations between these two largest economies of the world have become strong. Recently, top economic officials of both the countries have also agreed on the outline of a possible trade agreement. It is expected that this may be approved in the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea this weekend. Whenever tensions between two major economies ease, investors move money from gold, considered a ‘safe investment’, into riskier markets, such as the stock market. Gold is considered a ‘safe haven’, and in times of peace the demand for it often decreases.
Also read- Gold hits record high! Will the price go below Rs 1 lakh now?
The second big reason is the eyes fixed on the decision of the US Federal Reserve. Investors are waiting to see what stance the US central bank takes regarding interest rates. The policies of the Federal Reserve directly affect the strength of the dollar and bond yields. If the Fed raises interest rates, the dollar strengthens and investing in non-interest bearing gold becomes less attractive.
The third reason is the continued strength of the dollar. In the international market, gold is traded in dollars. When the dollar strengthens, it becomes expensive for countries holding other currencies (like the rupee) to buy gold, which naturally reduces its demand.
Along with these global cues, domestic and international investors are also booking profits at current levels. Investors who had earlier bought gold at low prices are now earning profits by selling their gold. Due to this mass selling, the supply of gold in the market suddenly increases, which pulls down the prices.
What is the price of gold in your city?
A softening of gold prices was also seen in different cities of the country on October 28. In the national capital Delhi, the price of 24 carat gold was recorded at Rs 123420 per 10 grams, while 22 carat gold was trading at Rs 113140.
Talking about the country’s financial capital Mumbai, here 24 carat gold was sold at Rs 123270 and 22 carat gold was sold at Rs 112990 per 10 grams. The same prices remained in Chennai, Kolkata and Hyderabad also.
In Ahmedabad and Bhopal, 24 carat gold was at Rs 123320 and 22 carat gold was at Rs 113040 per 10 grams. At the same time, in the markets of Jaipur, Lucknow and Chandigarh, the prices were recorded the same as in Delhi, i.e. Rs 123420 for 24 carat and Rs 113140 for 22 carat.
Silver movement also slowed down, price came to ₹ 1,54,900
Along with gold, the shine of silver has also faded. On October 28, a decline in silver prices was also recorded. The price of silver in Indian markets has come to Rs 154900 per kg. In foreign markets too, the spot price of silver fell by 2.03 percent to $ 47.60 an ounce. Like gold, investors are continuously booking profits in silver, due to which there is pressure on prices.