A big fall in gold prices was recorded in the bullion market of the national capital on Wednesday. Gold of 99.9 percent purity became cheaper by Rs 1,300 to Rs 1,44,500 per 10 grams (including all taxes). Earlier on Tuesday, its price was Rs 1,45,800 per 10 grams. This fall, which occurred for the second consecutive trading day, has brought some relief to the people planning to buy gold.
Silver showed strength, a strong rise of ₹ 5,000
While gold prices remained weak, silver was seen shining for the second consecutive day. On Wednesday, silver became costlier by Rs 5,000 and reached Rs 2,35,000 per kg (including all taxes). In the last trading session its price was Rs 2,30,000 per kg. Due to industrial demand and global market signals, silver remains bullish.
Why did gold become cheaper?
According to market experts, the strengthening of the US dollar and increase in US bond yields have had a direct impact on gold prices. Lemon Markets research analyst Gaurav Garg says that due to the strong dollar the demand for gold weakened, which created pressure on prices.
Experts say that when the dollar strengthens, gold becomes expensive for buyers from other countries. Due to this, global demand decreases and prices fall.
Gold and silver weak in foreign market also
A decline in gold prices was also recorded in the international market. Spot gold fell by $ 21.75 to $ 3,986.07 an ounce. At the same time, silver was also seen slipping by about 1 percent and trading at $ 58 an ounce.
According to Praveen Singh, Head of Commodities, Mirae Asset Sharekhan, gold remained under pressure for the third consecutive day in the international market due to the rise in the US dollar index.
What may lie ahead?
Analysts believe that in the coming days, the movement of the US dollar, bond yields and global economic signals will decide the direction of gold and silver prices. If the dollar remains strong then pressure on gold may continue, while silver may see fluctuations due to industrial demand.
Leave a Reply