Silver broke all records! The price in Delhi has crossed Rs 2.51 lakh, is it now not possible for the common man to buy gold and silver?

The direct impact of increasing geo-political tensions across the world is now visible on your pockets. On Wednesday, there was such a huge jump in the prices of silver that it created a new history. The price of silver in Delhi’s bullion market has once again crossed the mark of Rs 2.50 lakh. At the same time, if we talk about gold, there has been a slight decline in its prices, but it still remains above the high level of Rs 1.5 lakh. Market experts believe that even bigger fluctuations may be seen in the prices of these precious metals in the coming days.

Historic jump of silver in Delhi

A big increase of Rs 1,500 was recorded in the prices of silver in the national capital Delhi on Tuesday, after which its price reached Rs 2.51 lakh per kg. Strength in global markets and situations like the ongoing war in Middle East have attracted investors towards silver. Let us tell you that in the last trading session, silver had closed at Rs 2,49,500. On the other hand, gold of 99.9 percent purity has fallen by Rs 300 to Rs 1,52,500 per 10 grams, which was at Rs 1,52,800 on Monday.

Why are silver prices on fire?

According to Saumil Gandhi, Senior Analyst, HDFC Securities, the increasing tension in the Middle East is worsening the economic outlook. News of missile attacks and the fragile state of security around the Strait of Hormuz have worried investors. Due to this tension, there is a fear of energy related inflation increasing, due to which central banks may keep their monetary policies tight. As the conflict entered its tenth week, gold remained under pressure as investors turned to the US dollar and Treasury yields as safe havens over gold.

Will gold and silver become more expensive in future?

Talking about foreign markets, spot silver in the international market has increased by 1.08 percent to reach $ 73.51 per ounce. Experts say that fluctuations in crude oil prices may be temporary, but the scope for a big rise in gold seems limited at the moment. This is because investors have already sensed the possibility of the US Federal Reserve increasing interest rates.

Impact of violence and strict policies

Reneesha Chainani, Augmont’s research head, said that incidents like the interception of missiles by the United Arab Emirates (UAE) have dealt a blow to the four-week-long ceasefire efforts. This new round of violence has created instability in the market. In the coming time, due to strict monetary policy, there is full expectation of increase in crude oil prices and global bond yields, which will have a direct impact on the prices of precious metals.