Kolkata: In the bullion markets of India there has been significant fluctuation in both gold and silver this week. Between March 2 and 6 profit booking was reported in both gold and silver and price of the precious metals came down significantly. Gold prices dropped by Rs 4,480, or 2.69%, while silver became cheaper too in the spot market. But on Thursday and Friday (March 5 and 6) both precious metals notched up slight recovery MCX. Gold is witnessing support globally due to the military conflict in West Asia, but selling pressure is seen in the domestic market.
According to the bullion website, the price of 24-carat gold was recorded at Rs 166,740 per 10 grams on March 2. On March 6, it went down to Rs 162,260 per 10 grams. The decline is, therefore, by 2.69%, or Rs 4,480, in five days. Silver reached a high of Rs 280,260 per kg on March 2 but on March 6, it slid to Rs 268,820 per kg. The fall was, therefore, by Rs 11,440.
Growth on MCX
Gold and silver have seen witnessed a rise over the past two days on MCX. On March 6, gold closed at Rs 161,675 per 10 grams, a marginal gain of Rs 41. Silver also gained Rs 284 to close at Rs 268,569 per kg.
Profit-booking reported
After reaching the highs, both metals attracted bouts of profit-booking. It led to a steady decline in 24-carat and 22-carat gold prices. However, the movement of the yellow metal in the international market has been slightly different. On Thursday, spot gold reached around $5,160 per ounce in the global market. Due to rising tensions in West Asia, investors are eyeing gold as a safe-haven investment. While global geopolitical tensions are supporting gold, domestic prices are seeing a decline due to profit-booking after the recent rally.
Factors to watch
Rising tensions in West Asian countries could continue to support precious metals. However, profit-booking will also come into play when peaks are reached. Gold and silver prices witnessed significant fluctuations on Friday, primarily due to ongoing geopolitical tensions in West Asia and strong safe-haven buying. Now investors’ eyes are fixed on updates on Middle East tension and the position of the dollar.
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