Gold and silver prices witnessed a strong surge in Delhi on Monday. According to the All India Bullion Association, silver strengthened by ₹4,300, reaching a price of ₹2.57 lakh per kilogram. On Friday, silver had closed at ₹2,53,000 per kilogram. On Monday, gold of 99.9 percent purity rose by ₹800, reaching ₹1.57 lakh per 10 grams.
What Is The Status Of Gold And Silver In Global Markets?
However, global trends remained subdued. Spot silver fell by $1.09 (or 1.35 percent) to $79.71 per ounce, while gold prices dropped by 0.52 percent to $4,805.09 per ounce. Saumil Gandhi, Senior Analyst for Commodities at HDFC Securities, stated, “Gold began the week with a weak trend, reflecting the shifts in geopolitical and macro conditions that occurred over the weekend.”
He further added that the situation surrounding the Strait of Hormuz deteriorated rapidly; Iran reimposed strict controls less than 24 hours after reopening the strait, while the US seized an Iranian cargo vessel attempting to bypass its blockade.
Fluctuations In Gold And Silver Prices Due To Global Tensions
Gandhi further noted, “These developments have heightened concerns regarding the stability of the ceasefire and increased uncertainty surrounding the US-Iran peace talks. The renewed escalation of tensions has revived concerns regarding high energy prices and inflation, thereby strengthening the dollar and exerting pressure on precious metals.” Meanwhile, investors are expected to keep a close watch on key global macroeconomic indicators this week.
Kainat Chainwala, AVP of Commodity Research at Kotak Securities, stated that investors will focus their attention on global macroeconomic data. This includes US retail and home sales figures, weekly jobless claims, and consumer sentiment data.
Investors To Watch For Statement By Fed Chairman
PMI data from major economies will also be monitored for signs of growth. She further added that, additionally, the markets will be keeping an eye on the statement to be delivered before Congress on Tuesday by the new Federal Reserve Chairman, Kevin Warsh. This could provide early indications regarding his policy stance and his tolerance for energy-driven inflation. Chainwala noted, “Nevertheless, the primary driving factor is likely to remain the escalating standoff between the US and Iran, and any significant escalation is feared to exert additional pressure on gold prices.”
