On Wednesday, gold prices in the national capital Delhi fell by Rs 4,300 to Rs 1.56 lakh per 10 grams, while silver prices fell by a huge Rs 10,000 to Rs 2.45 lakh per kg. Due to increase in crude oil prices and strong US dollar, the demand for these precious metals reduced. According to local market experts, the price of gold of 99.9 per cent purity declined by Rs 4,300 (or about 3 per cent) to Rs 1,56,000 per 10 grams (including all taxes), while the previous closing price was Rs 1,60,300 per 10 grams. Silver prices fell by Rs 10,000 (or 4 per cent) to Rs 2,45,700 per kg (including all taxes), compared to the previous closing price of Rs 2,55,700 per kg.
Why did gold and silver become cheaper?
Rajkumar Subramaniam, Head of Product and Family Office of PL Wealth, said that there was a sudden change in the prices of gold on Wednesday. The reason for this was the increase in geopolitical tension between America and Iran, due to which the price of crude oil went above $ 90 per barrel and the dollar became stronger. He said rising energy prices have reignited concerns about persistent inflation and prolonged high interest rates, which have reduced the attractiveness of precious metals.
What is the situation in foreign markets?
In international markets, spot gold fell by $90.53 (or 2.13 per cent) to $4,168.99 an ounce and silver fell by 2.24 per cent to $63.87 an ounce. Gaurav Garg, Research Analyst, Lemon Markets Desk, said that the prices of gold and silver fell in the foreign markets. This fall in both the precious metals was due to the strong dollar and increase in US treasury bond yields. Amidst geopolitical tensions and inflation concerns, these reasons reduced the attractiveness of bullion (gold and silver).
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