Gold and silver prices have witnessed a massive surge, reigniting intense activity within the market. In Delhi’s bullion market, silver took a significant leap, rising by ₹11,250 to reach ₹2.41 lakh per kilogram. Meanwhile, gold also climbed by ₹4,900, nearing the ₹1.49 lakh mark per 10 grams.
According To The All India Bullion Association:
The price of silver rose from ₹2,30,000 to ₹2,41,250 per kilogram registering a gain of approximately 4.89%. Concurrently, 99.9% purity gold jumped from ₹1,44,800 to ₹1,49,700 per 10 grams, marking an increase of 3.38%.
What Triggered The Surge In Gold And Silver Prices?
According to experts, this upward trend signals a recovery in both domestic and global markets. Saumil Gandhi, a commodities analyst at HDFC Securities, stated that this indicates a strong recovery in recent trading sessions, bolstered by an improved geopolitical environment.
Both gold and silver also witnessed gains in the international market. Spot gold rose by approximately $82 or about 2% to reach $4,556 per ounce. Similarly, silver was seen trading at $72.67 per ounce, recording a 2% increase.
Middle East Situation & A Weakening Dollar: Key Factors
According to Praveen Singh of Mirae Asset Sharekhan, gold prices have risen for the second consecutive day. The reason behind this is that investors see hope for a potential ceasefire between the United States and Iran. This led to a softening in crude oil and the dollar, a direct benefit of which accrued to gold and silver.
However, the picture is not entirely clear. While the US has expressed hope for dialogue, Iran has ruled out talks. Additionally, the imposition of tolls on vessels passing through the Strait of Hormuz has heightened uncertainty in the global market.
In short, it is evident that the bullish trend has returned to gold and silver; however, volatility is likely to persist going forward.
What Should Investors Do Next Buy Or Wait?
Ajay Kedia, Director at Kedia Advisory, clearly advises against making large, hasty purchases amidst this rally. Investors should allow the market to stabilize first and let a strong base form. If gold is required for a wedding or immediate necessity, one may proceed with a purchase; however, for investment purposes, it would be prudent to wait a little longer at this juncture.
What Are The Target Price Levels For Gold And Silver?
According to Ajay Kedia, gold could potentially dip to a range of ₹1.12 to ₹1.15 lakh per 10 grams in the near future. Meanwhile, silver could reach levels between ₹1.75 and ₹1.80 lakh per kilogram. This implies that, following the current rally, there remains scope for a subsequent decline.
