Gold-Silver Price: Gold becomes costlier by Rs 1050, silver crosses Rs 2.71 lakh

On Tuesday, gold prices reached Rs 1.61 lakh per 10 grams in the bullion market of the national capital. Demand for these precious metals increased again due to weak dollar and softening of crude oil prices. According to All India Bullion Association, the price of gold of 99.9 percent purity increased by Rs 1,050 to Rs 1,61,450 per 10 grams (including all taxes).

On Monday it closed at Rs 1,60,400 per 10 grams. Silver prices also strengthened by Rs 1,300 and increased to Rs 2,71,000 per kg from the previous closing price of Rs 2,69,700 per kg.

The fall in crude oil got support

Market experts said that precious metals got support from the fall in crude oil prices. This reduced the fear of inflationary shock arising due to tensions in West Asia. The decline in US bond yields and weak dollar further increased the appeal of bullion prices. Jatin Trivedi, Vice President Research Analyst-Commodity and Currency, LKP Securities, said domestic gold prices were also supported by the rupee’s weakness. The weak rupee helped in reducing some of the pressure due to uncertainty in the global market and supported the gains in the domestic bullion market.

There was a boom in the global market also

In international markets, spot gold rose one per cent to $4,528.75 an ounce, while silver rose two per cent to $76.29 an ounce. On Tuesday, spot gold and silver rose by more than one per cent to $ 4,520 an ounce and about $ 77 an ounce, respectively, Kotak Neo’s AVP Commodity Research Kainat Chainwala said. The reason for this was that the weakness in crude oil prices reduced concerns about the future of inflation and interest rates. Investors’ attention is focused on the developments related to the ongoing talks between America and Iran. Markets are swinging between optimism about diplomatic progress and concerns that talks could break down. Chainwala said the focus is now turning to US macroeconomic data, including the number of job vacancies, comments from Federal Reserve officials, and the non-farm payrolls report to be released on Friday.