In the country’s capital Delhi, gold prices witnessed a rise for the second consecutive day. According to experts, due to geopolitical tension, the price of gold has increased for the second consecutive day. Gold has become costlier by Rs 1300 in these two days. For this, a decline in the price of silver was seen on Wednesday. Whereas a day earlier, an increase of about Rs 11 thousand was seen in the price of silver. If experts are to be believed, there may be fluctuations in the prices of gold and silver in the coming days. Let us also tell you what the prices of gold and silver have become.
Gold becomes expensive, silver becomes cheap
According to All India Bullion Association, the white metal fell by Rs 4,275, or 1.53 per cent, to Rs 2,75,000 per kg (including all taxes) from Tuesday’s closing level of Rs 2,79,275 per kg. However, gold edged up, with gold of 99.9 per cent purity rising by Rs 900, or 0.54 per cent, to Rs 1,65,600 per 10 grams (including all taxes). In the last market session, the yellow metal was settled at Rs 1,64,700 per 10 grams. The special thing is that the price of gold has increased for the second consecutive day and the price has increased by Rs 1300. The analyst said that amid rising geopolitical tensions, increased safe-haven demand supported gold prices, while silver remained under pressure.
Why was there demand for gold?
Saumil Gandhi, senior analyst of commodities at HDFC Securities, said that there was a positive trend in gold on Wednesday due to increased safe-haven demand amid increasing tensions in Iran conflict and increasing geopolitical uncertainty. He further said that the current increase will continue to act as a tailwind for traditional safe-haven assets like gold. However, a fall in bullion was seen in foreign trade. Spot gold was down slightly at USD 5,189.05 an ounce, and silver fell USD 1.59, or 1.8 percent, to USD 86.69 an ounce.
What are the experts saying?
Kaveri More, commodity analyst at Choice Broking, said gold prices remained under pressure on Wednesday, easing despite rising geopolitical tensions as key macroeconomic factors outweighed safe-haven demand. He said that increasing market uncertainty, reflected by the increase in the CBOE Volatility Index, has encouraged investors to maintain more cash positions rather than rapidly accumulating bullion. Peacock said the selloff in global equities due to rising oil prices and continued tensions in the Middle East has increased volatility across the asset class, but has failed to provide sustained support to gold.