Gold and silver prices witnessed heavy profit-booking for the second consecutive day. Amidst signs of a slight easing of global tensions, precious metals prices registered a sharp decline in the domestic bullion market on Friday. Silver prices in Delhi plummeted by up to Rs 13,000, while gold also fell from its record levels. However, significant volatility and a recovery phase were observed in international markets while the Indian markets were closed.
Domestic Market: Silver At Rs 2.55 Lakh
According to data from the All India Bullion Association, silver prices fell sharply by 4.85% on Friday. The white metal dropped by Rs 13,000 to close at Rs 2,55,000 per kilogram (including all taxes). It had closed at Rs 2,68,000 per kilogram on Thursday.
The shine of gold also faded. Gold of 99.9% purity fell by Rs 3,400 or 2.12% to close at Rs 1,57,200 per 10 grams, compared to Rs 1,60,600 in the previous session. Traders say that this decline in domestic prices is mainly due to profit-booking at higher levels.
Volatility Seen In Global Market Prices
While prices fell in Indian markets, significant volatility was observed in the international market on Friday. After an initial decline, global prices registered a recovery of more than 4%.
Silver: Spot silver recovered from its intra-day low ($64.08 per ounce) to rise by 4.26% to $74 per ounce. At one point, it had seen a decline of almost 10%. Gold: Spot gold also weakened in early trading, falling to a low of $4,654 per ounce, but later surged by 2.23% ($106.74) to trade at $4,887.30 per ounce.
What Is The Reason For This Volatility?
According to experts, this volatility is due to the ongoing talks between the US and Iran in Oman and the uncertainty surrounding the US Federal Reserve’s monetary policy.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said that weak US jobs data has supported precious metals, but expectations of a breakthrough in the US-Iran talks have limited the price increase. He added that significant volatility continues in the bullion complex due to the ongoing meeting in Oman and the future direction of US monetary policy.
The current market movement indicates that the tug-of-war between geopolitical developments and economic data will continue. While domestic investors are currently in a profit-taking mood, the global market is reacting sharply to every piece of news.
