gold and silver
Amid the Middle East tension, a rise in silver prices has been seen in the country’s capital Delhi. After which the prices of silver have crossed Rs 2.75 lakh. On the other hand, no change has been seen in the price of gold. According to reports, on Monday, gold prices in the national capital remained stable at Rs 1.62 lakh per 10 grams, while silver rates increased slightly to Rs 2.76 lakh per 1 kg. This happened due to new restrictions on silver import and weakness in the rupee. According to All India Bullion Association, the price of silver increased by Rs 1,000 to Rs 2,76,000 per kg (including all taxes), which was Rs 2,75,000 per kg at the time of market closing on Friday. According to the association, the price of gold of 99.9 percent purity in the bullion market remained unchanged at Rs 1,62,800 per 10 grams.
Why did silver prices increase?
Analysts said that despite weakness in global markets, domestic bullion prices remained relatively strong. Saumil Gandhi, senior analyst of commodities at HDFC Securities, said that gold prices in the domestic market remained stable on Monday. Earlier in the last session, due to weakness in the international bullion market, heavy selling of gold was seen.
However, losses in local prices were limited as the Indian rupee weakened further to a record low of around 96.37 against the US dollar. He further said that the weak rupee helped arrest the fall in domestic gold prices.
Market participants also reacted to the Central Government’s decision to immediately ban the import of almost all forms of silver. The purpose of this step is to reduce pressure on the rupee and ban non-essential imports. Gandhi said that this step is expected to reduce the import of silver and reduce its availability in the domestic market, due to which the premium on silver in the local market may increase.
Price of gold and silver in international market
In the international market, spot gold was trading marginally lower at $ 4,535.23 an ounce, while silver fell by almost 1 percent to $ 75.42 an ounce. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said that spot gold prices declined on Monday as the US dollar and oil prices continued their upward trend since last week. Meanwhile, the US-China summit concluded on a somewhat positive note as President Donald Trump did not raise contentious issues like technology, trade and tariffs.
Singh further said that as a result, global bond yields surged, further adding to the downward pressure on gold prices. According to Jatin Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, investors are keeping an eye on the ongoing developments between the US and Iran as well as the rupee-dollar movement, which are causing fluctuations in the bullion markets.
