Amid the Iran crisis, there was a tremendous rise in the prices of crude oil on Monday. Due to which the crisis of inflation has arisen all over the world. Due to which, there may be a pause in the reduction in interest rates by the Central Banks. Due to which there has been a rise in the dollar index. The dollar index has reached near the level of 100 during the trading session. The effect of which is visible in the prices of gold and silver. There is pressure in the prices of gold and silver from the international market to the local market.
If we talk about the country’s capital Delhi, there may have been no change in the price of gold, but there has been a big decline in the price of silver. However, a decline in the prices of gold and silver has been seen in the futures market of the country. Let us also tell you at what level the prices of gold and silver are being seen in the country’s capital Delhi.
Silver became cheaper in Delhi
On Monday, silver prices fell by Rs 3,400 to Rs 2.68 lakh per kg in the national capital, and gold traded almost unchanged at Rs 1,64,300 per 10 grams, as a stronger US dollar reduced demand for the precious metal amid volatility in the global market. According to All India Bullion Association, the white metal continued its decline for the third consecutive day and fell by Rs 3,400 or about 1.3 per cent to Rs 2,68,300 per kg (including all taxes), while it had closed at Rs 2,71,700 per kg on Friday.
Meanwhile, gold of 99.9 percent purity rose marginally by Rs 200 to Rs 1,64,300 per 10 grams (including all taxes). According to the association, in the last market session the yellow metal had closed at Rs 1,64,100 per 10 grams. Globally, spot gold was trading USD 65.23 or 1.26 per cent lower at USD 5,105.89 an ounce, while silver was also trading 0.53 per cent lower at USD 83.92 an ounce.
What are the experts saying?
Saumil Gandhi, senior analyst of commodities at HDFC Securities, said that last week’s decline in silver worsened as a sharp rise in crude oil prices increased concerns that inflationary pressures could increase again. Higher energy prices boost inflation expectations, which could delay the pace of interest rate cuts by the Federal Reserve. He said that this situation provided support to the US dollar and treasury yields, which put pressure on precious metals. Praveen Singh, Head of Commodities and Currency at Mirae Asset Sharekhan, said that gold is trading at the level of USD 5,097 per ounce due to an increase of almost 30 per cent in crude oil prices overnight due to supply concerns in the Middle East.
Will there be further decline?
Kainat Chainwala, AVP Commodity Research, Kotak Securities, said forced liquidations to meet margin calls during the massive market selloff also put pressure on bullion prices as tensions had risen sharply last week. He further said that investors will now keep an eye on key US macroeconomic indicators such as CPI, Core PCE Price Index, Prelim GDP, and JOLTS job openings for further signals on the Fed’s policy trajectory, while geopolitical developments in West Asia are expected to weigh on market sentiment.