The effect of the new tension between America and Iran is now visible on the gold market as well. On Monday, a huge fall of Rs 2,500 was recorded in the price of gold in the national capital Delhi. Due to weakness in the global market and rise in crude oil prices, investors’ interest in gold decreased slightly.
According to All India Bullion Association, gold of 99.9 percent purity fell by Rs 2,500 or about 1.5 percent to Rs 1,60,400 per 10 grams. Earlier on Friday its price was Rs 1,62,900 per 10 grams. There was also a big fall in the price of silver. Silver became cheaper by Rs 5,000 i.e. about 2 percent and reached Rs 2,69,700 per kg. In the last trading session its price was Rs 2,74,700 per kg.
HDFC Securities Senior Commodity Analyst Saumil Gandhi said that the increase in US-Iran tension during the weekend led to a rise in crude oil prices, which strengthened the dollar. This had direct pressure on gold prices. He said that the increase in US treasury bond yields has also affected the demand for precious metals like gold and silver. In the international market, spot gold fell by about 1 percent to $ 4,504.97 an ounce. However, spot silver saw an increase of about 1 percent and was seen trading at $ 75.93 an ounce.
According to Kainat Chainwala, AVP Commodity Research, Kotak Securities, gold and silver prices are fluctuating amid uncertainty over the US-Iran ceasefire. On Monday, gold was seen trading around $ 4,500 an ounce and silver around $ 76 an ounce. This week, investors will keep an eye on US employment data, comments from Federal Reserve officials and statements by Treasury Secretary Scott Besant. Apart from this, the situation in West Asia can also play an important role in deciding the direction of gold and silver prices.
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