In the country’s capital Delhi, there was a tremendous rise in the prices of gold and silver after falling for two consecutive days. This surge has been seen at a time when the US Central Bank, the Federal Reserve, is considering cutting interest rates. Late Wednesday night, Federal Reserve Chairman Jerome Powell may cut the rate by 25 basis points. Due to which gold prices seem to be getting support in the international market also. Gold prices in the international market have once again crossed $4000. Let us also tell you what the prices of gold and silver have become in the bullion market of Delhi.
Gold and silver became expensive in Delhi
Gold prices rose by Rs 2,600 to Rs 1,24,400 per 10 grams in the national capital Delhi on Wednesday amid a fresh round of buying for safe haven investments ahead of the US Federal Reserve’s policy results. This stopped the trend of decline that had been going on for the last two sessions. According to the All India Bullion Association, gold of 99.5 per cent purity rose by Rs 2,600 to Rs 1,23,800 per 10 grams (including all taxes), while it had last closed at Rs 1,21,200 per 10 grams. This precious metal with 99.9 percent purity had closed at Rs 1,21,800 per 10 grams on Tuesday. There was a huge jump in the prices of silver and its price increased by Rs 6,700 to Rs 1,51,700 per kg (including all taxes). According to the association, on Tuesday this white metal closed at Rs 1,45,000 per kg.
Gold prices in international market
In international markets, spot gold rose $77.26, or 1.95 percent, to $4,029.53 an ounce, ending a three-day losing streak. Spot gold is currently trading around $4,020 an ounce as the metal tries to recover from Tuesday’s low of $3,886 ahead of the FOMC monetary policy decision scheduled for tonight.
Spot silver in foreign markets increased by 2.85 percent to $ 48.40 an ounce. Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said gold prices jumped on Wednesday and touched the psychological level of $ 4,000 an ounce ahead of the results of the much-awaited FOMC (Federal Open Market Committee) policy meeting.
Gandhi said that following growing geopolitical concerns in the Middle East, there is renewed demand for bargain buys and safe investment properties. Praveen Singh, head of commodities and currencies at Mirae Asset Sharekhan, said the Federal Reserve is expected to cut rates by 25 basis points as it turns its attention to the weakening jobs market. He said that the metal is still not out of trouble, although the rate cut by the Fed will limit the fall.
Gold prices also increased due to these reasons
Meanwhile, the dollar index rose 0.15 percent to 98.82 ahead of Fed results, while analysts said optimism over signs of easing US-China trade tensions could limit further gains in safe-haven demand. There are also persistent geopolitical risks after the US Senate failed to re-pass a Republican-backed bill to end the government shutdown. According to experts, the White House canceled a planned meeting between US President Donald Trump and Russian President Vladimir Putin after Moscow imposed new sanctions on top oil companies. These restrictions may continue to support the precious metal.