If you are planning to buy gold or silver, the drop in their prices may come as a welcome relief. The prices of both gold and silver declined in the bullion market of the national capital. A stronger rupee, high crude oil prices, and weak trends in global markets influenced the prices of these precious metals.
According to the All India Bullion Association, the price of gold (99.9% purity) fell by 1,300 rupees to 1,49,000 rupees per 10 grams. In the previous trading session, the price of gold stood at 1,50,300 rupees per 10 grams. Silver prices also saw a decline. After remaining stable for two consecutive days, the price of silver fell by Rs 1,600 to Rs 2,13,400 per kilogram, down from Rs 2,15,000 per kilogram on Monday.
According to Jatin Trivedi, Vice President and Research Analyst at LKP Securities, gold and silver prices in the domestic market remained under pressure due to the strengthening of the rupee. Furthermore, concerns regarding rising inflation driven by high crude oil prices also dampened market sentiment. Following intervention by the Reserve Bank of India, the rupee strengthened by 48 paise against the US dollar, closing at a provisional level of 94.43 on Wednesday.
Ashish Rajodia, Head of Commodities at PL Capital, noted that silver also remained under pressure in the domestic market. However, a softening in crude oil prices driven by initial hopes for a peace agreement with Iran provided temporary support to precious metals. In the global market, spot gold remained stable at approximately $4,127.68 per ounce, while silver fell by 0.48 percent to trade at $57.72 per ounce.
According to Kaynat Chainwala, Assistant Vice President at Kotak Neo, gold in the global market is holding steady around $4,126 per ounce, while silver has declined from a high of $58.60 per ounce in the previous session to $57.10 per ounce. She expressed concern that if Brent crude prices continue to rise and inflationary pressures intensify, gold could fall below $4,100 per ounce and silver below $55 per ounce in the coming days. Investors are now focused on the US Federal Reserve’s monetary policy meeting next week and trends in the bond market. These factors could play a key role in determining the direction of gold and silver prices in the coming days.
