There was a strong rise in the prices of gold and silver in the bullion market of the national capital Delhi on Friday. The price of gold of 99.9 percent purity increased by Rs 400 to Rs 1,48,500 per 10 grams. At the same time, the price of silver increased by Rs 5,000 in a single day and its price became Rs 2,37,000 per kg (including all taxes).
Earlier in the trading session, gold had closed at Rs 1,48,100 per 10 grams, while silver had closed at Rs 2,32,000 per kilogram. With Friday’s rise, silver also broke the trend of decline that had been going on for three consecutive days.
Prices increased due to these reasons
Market experts say that the demand for gold and silver has increased due to weakness in the US dollar and buying by investors at lower levels. Earlier this week, gold prices had reached a one-week low. After this, taking advantage of the low prices, investors started buying, due to which the market regained its momentum.
According to Saumil Gandhi, senior commodity analyst at HDFC Securities, a weak dollar and buying at cheaper prices supported gold prices on Friday. He says that due to both these reasons the sentiment of investors got strengthened and there was a rise in the market.
Mixed trend in international market
Amid the rise in the domestic market, there was a slight weakness in the prices of gold and silver in the international market. Spot gold was seen trading at $ 4,106.25 an ounce, down by $ 17.57. At the same time, silver fell by about 1 percent to $ 59.54 an ounce.
Mirae Asset Sharekhan’s Commodity Head Praveen Singh says that gold prices in the global market currently remain in a limited range due to the expectation of resumption of talks between America and Iran.
Keep an eye on US inflation data next week
The market is now eyeing the US Consumer Price Index (CPI) data to be released next week. These data may indicate what stance the US Federal Reserve will take regarding interest rates going forward. If the expectation of reduction in interest rates becomes strong, then its effect can also be seen on the prices of gold and silver. Therefore, there may be fluctuations in the precious metals market in the coming days.
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