There is a steady decline in trade tension between America and China. Due to which there has been a decline in the demand for gold and silver. If experts are to be believed, there may be a big fall in the prices of gold and silver in the coming days. By the way, the prices of gold in the futures market of the country have gone below Rs. 1.25 lakh. On the other hand, silver prices have fallen below Rs 1.50 lakh. Experts say that a policy meeting of the Federal Reserve is going to be held in the coming days. A decision will be taken regarding interest rates. Which will decide the prices of gold and silver. Let us also tell you what the prices of gold and silver have become in the country’s capital Delhi.
How much did gold become cheaper?
Due to less trade tension and less demand for safe investments, the price of gold in the country’s capital Delhi fell by Rs 700 to Rs 1,25,900 per 10 grams on Monday. According to All India Bullion Association, on Saturday this yellow metal had increased by Rs 1,000 to Rs 1,26,600 per 10 grams. Gold with 99.5 percent purity also declined by Rs 700 to Rs 1,25,300 per 10 grams (including all taxes). In the last session it had closed at Rs 1,26,000 per 10 grams. HDFC Securities Senior Analyst (Commodities) Saumil Gandhi said that gold started trading with weakness on Monday due to signs of easing of US-China trade tensions, increased investor interest in risky assets and negative impact on precious metals.
Big fall in silver prices too
In the local bullion market on Monday, the price of silver fell by Rs 4,250 to Rs 1,51,250 per kg (including all taxes). On Saturday, silver closed at Rs 1,55,500 per kg with a rise of Rs 2,900. In overseas markets, spot gold continued to fall for the second consecutive day and fell by $ 97.86 or 2.38 per cent to $ 4,015.55 an ounce. In foreign markets, spot silver fell by 2.03 percent and was quoted at $ 47.60 an ounce.
Gold prices in the country’s futures market
If we talk about the futures market of the country, Multi Commodity Exchange, then a big fall is being seen in the prices of gold. If we look at the data, gold fell by Rs 2,183 per ten grams to Rs 1,21,268 during the trading session on MCX. Whereas at 5.45 pm, gold is trading at Rs 1,21,650 per ten grams with a fall of Rs 1,801 per kg. However, this morning gold opened at Rs 1,22,500 and on Friday the price was seen at Rs 1,23,451. However, gold had reached a life time high of Rs 1,32,294 on October 17. Since then, gold prices have come down to Rs 10,644.
Silver also became cheaper in the country’s futures market
On the other hand, a big fall is also being seen in the prices of silver on the country’s futures market Multi Commodity Exchange. Talking about the data, on Monday the price of silver on MCX fell by Rs 4,560 per kg to Rs 1,42,910. Whereas at present at 5.45 pm the price of silver is trading at Rs 1,44,532 with a fall of Rs 2,938.
However, silver opened this morning with a fall at Rs 1,42,910. Whereas on Friday the price of silver closed at Rs 1,47,470. On October 17, the price of silver had reached a life time high of Rs 1,70,415. Since then, silver prices have fallen by Rs 27,505 per kg.
What are the experts saying?
On Sunday, top economic officials from Washington and Beijing agreed on the outlines of a potential trade deal, which is expected to be discussed during a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in South Korea later this week. Gandhi said investors are continuing to book profits and withdraw funds from gold-based exchange-traded funds, putting further pressure on bullion prices.
He said that we believe that bullion will remain under selling pressure in the short term and the decline will intensify if spot gold falls below the level of $ 4,000 an ounce. Investors are focusing their attention on the central bank meetings to be held later this week.
Renisha Chainani, head of research at Augmont, said that after weaker than expected inflation data, the US Federal Reserve is expected to cut interest rates by 25 basis points, while the European Central Bank and the Bank of Japan are expected to maintain the existing policy rates.