Kolkata: Gold and silver price rose in the bullion market on April 10. The comeback was specially strong for the white metal. The gains of gold were less pronounced. Silver especially attracted investor attention. According to market analysts, the fragility of the ceasefire and truce in the US-Iran war contributed to this rise. So did the weakness of the US dollar. Both factors proved to be a tailwind for the white metal and yellow metal. Analysts maintain that the demand of silver is intricately linked to a few industrial sectors of the future. These are renewable energy, high performance electronics such as data centres and electric vehicles. Therefore, the long-term outlook for the metal is bullish indeed.
White metal and yellow metal price
Silver prices surged significantly in the national capital. White metal price jumped by about Rs 3,800 to touch Rs 2,47,000 per kilogram. The price of silver declined a day earlier but the very next day, it recovered a lot of ground. Gold was not lagging behind a lot either. The yellow metal of the 99.9% purity rose by Rs 400 to reach Rs 1,55,300 per 10 grams. The week as a whole has been quite strong for precious metals. Silver gained nearly Rs 10,000, or over 4%, while gold also rose by nearly Rs 3,800.
Global factors at play
Analysts tell us that a few factors on the global stage are driving the current surge. While there are early signs of easing tensions between Iran and the United States in West Asia, the situation is far from stable and predictable. In this climate of uncertain peace, investors are turning to safe-haven investments, which is providing an upward pressure to the demand for gold and silver. Also the weakness of the US dollar is a very significant factor. If the dollar became strong, investors would not have diverted investments from it. Usually when the dollar weakens, metals like gold and silver become more attractive to investors, which provide safe-haven appeal. The volatility in the price of gold and silver in the past few weeks was mainly driven by the dollar gaining in strength.
The impact was unambiguous in the global market. Gold prices remained above $4,700 per ounce, while silver also traded higher by about 1%. According to analysts, if the geopolitical situation remains stable, prices may continue to fluctuate within a limited range.
Risk not over
But the signal is clear: the risk is not over yet. Tensions between Israel and Lebanon refuse to go away and it is also casting its shadow on US-Iran talks. If this situation persists and if the US dollar remains weak, gold and silver prices could rise further. However, once lasting peace is reached, prices could stabilise. Market analysts argue that the current level signals a turning point for the market — if peace is durable, the prices will go one way, if not, the other. The next several days can determine whether gold and silver prices will reach new heights or see some stability.
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