Massive Drop In Gold And Silver Prices: Rates Plunge By Up To 5,400
How Did The Dollar, Oil, And Global Tensions Drive Down Prices?
The bullion market in Delhi witnessed a sharp decline in the prices of gold and silver. Gold became cheaper by ₹900, settling at ₹156,100 per 10 grams, while silver experienced an even steeper fall, tumbling by ₹5,300 to reach ₹250,000 per kilogram.
These prices are inclusive of all taxes. In the previous trading session, gold had closed at ₹157,000 per 10 grams, and silver at ₹255,300 per kilogram.
According to the All India Bullion Association, this decline in the price of 99.9% purity gold is attributable to weak global cues. Market experts state that changing circumstances at the international level are having a direct impact on the domestic market.
How Did The Dollar And Crude Oil Drive Down Prices?
According to Saumil Gandhi, Senior Analyst at HDFC Securities, a strengthening dollar and rising crude oil prices have dampened the demand for gold. When the dollar strengthens, gold becomes a less attractive investment option for investors.
Turning to the international market, silver fell by nearly 2% to trade at $76.37 per ounce, while gold showed marginal weakness, trading at $4,738.40 per ounce.
US-Iran Relations And The Strait Of Hormuz : Major Contributing Factors
Furthermore, the lack of significant progress in talks between the US and Iran, coupled with escalating tensions around the Strait of Hormuz, continues to fuel uncertainty in the market. Additionally, the yield on US 10-year bonds has risen to 4.32%, which has somewhat dimmed the appeal of safe-haven assets like gold.
