After a continuous fall of 5 consecutive days, the prices of gold increased on Wednesday. The main reason for the rise in gold prices is believed to be a major decline in the rupee. According to experts, the fall in the rupee against the dollar increases the prices of gold in the local markets. On Wednesday, the currency market has seen a decline of 52 paise in the rupee against the dollar. Earlier, there was a decline of Rs 3200 in gold prices. Gold prices were broken in Delhi on 5 consecutive business days. Let us also tell you how much gold prices have gone in the country’s capital Delhi.
Gold prices increase
According to this information, the All India Bullion Association on Wednesday increased by Rs 700 to Rs 98,520 per 10 grams in the bullion market of Delhi, the capital of the country. In this way, the process of continuing decline in gold from the last five sessions stopped. On Tuesday, gold with 99.9 per cent purity closed at Rs 97,820 per 10 grams. In the national capital, the price of gold with 99.5 per cent purity increased by Rs 650 to Rs 98,200 per 10 grams (including all taxes) on Wednesday. It was Rs 97,550 per 10 grams at the time of the last market shutdown. According to the bullion association, apart from this, silver prices rose by Rs 1,000 to Rs 1,14,000 per kg (including all taxes) on Wednesday. On Tuesday, it was stable at Rs 1,13,000 per kg. Globally, the spot gold was trading stable at $ 3,330.33 an ounce. However, the silver spot in foreign markets was trading at $ 38.09 an ounce.
Rupee declines is a big reason
Soumil Gandhi, Senior Analyst (Commodity) of HDFC Securities, said that due to a steep decline in the rupee, there was a good increase in gold prices in the domestic market. The rupee declined due to the rise in crude oil prices and uncertainty over the US-India trade agreement. After the US President Donald Trump’s indication of the fee rate of about 20-25 percent before the August 1 deadline, the rupee fell 52 paise against the US dollar on Wednesday to 87.43 (temporary) due to uncertainty over the Indo-US trade agreement.
What are you saying?
Kotak Securities, AVP, Commodity Research Kayanat Chanwala said that the gold is trading with a stable trend… because investors are waiting for the major country of America, including the second quarter gross domestic product (GDP) figures, ADP employment, pending domestic sales and interest rate decisions. He said that although the Federal Reserve is widely expected to keep the rates unchanged, the market is closely monitoring the guidance on the policy approach between acute political pressure and mixed economic signs.
Chintan Mehta, Chief Executive Officer (CEO) of Abson Financial Services, said that investors will also closely monitor the remarks of US Federal Reserve chief Jerome Pavel for any future indication. He said that in addition, GDP figures will provide new information about the strength of the American economy and potentially affect the stance of the Federal Reserve.