There was a strong rise in the prices of gold and silver in the bullion market of the national capital on Friday. Gold prices rose by Rs 1,600 due to strong global cues, hopes of an early agreement between America and Iran and possibility of increased demand for marriage in the domestic market.
Gold with 99.9 percent purity has now reached Rs 1,62,900 per 10 grams (including all taxes). Earlier, at the time of market closure on Wednesday, its price was Rs 1,61,300 per 10 grams.
Big jump of Rs 5,000 in silver
Not only gold, there was a tremendous rise in the prices of silver too. On Friday, silver strengthened by Rs 5,000 to Rs 2,74,700 per kg. In the last trading session its price was Rs 2,69,700 per kg. Bullion markets were closed on Thursday on the occasion of Eid-ul-Azha, after which purchasing increased as soon as the markets opened on Friday.
impact of global events
Harish V, Commodity Research Head, Geojit Investments Limited, said that the developments related to the ceasefire and initial agreement between America and Iran have had an impact on the prices of gold and silver. Apart from this, after the recent US inflation data, new expectations have been created in the market regarding the interest rates of the Federal Reserve. He said that the demand for wedding season in the domestic market is also supporting the prices of precious metals.
Prices may remain strong in future also
Experts believe that at present there is little possibility of a major fall in gold and silver. Strong fundamental factors of the market are supporting the prices. According to Harish V, silver is getting strengthened by the demand for safe investment as well as industrial use.
International market also booming
A rise in gold prices was also seen in foreign markets. Spot gold rose nearly 1% to $4,530.72 an ounce, while silver remained steady at $75.52 an ounce. Mirae Asset Sharekhan’s Commodity Head Praveen Singh said that the news of a possible agreement between America and Iran has reduced the pressure on gold prices. However, prices may remain in a limited range until complete details of the agreement are revealed.
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