Gold and silver prices skyrocketed! Amidst the tension in Hormuz, silver became costlier by more than Rs 11,000 in a week, know the new rate

Mumbai: If you are planning to buy gold or silver, then the latest movement in the market may surprise you. The ongoing geopolitical tension globally and fluctuations in crude oil prices are having a direct impact on your pocket. This week, a strong increase of 1.83 percent has been seen in the prices of gold. Silver has left everyone behind in terms of speed.

Huge jump in gold prices

On Friday, the last trading day of the week, June futures gold on MCX closed at Rs 1,52,589 per 10 grams. If we look at the data of India Bullion and Jewelers Association (IBJA), gold which was at Rs 1,48,357 at the time of market opening on Monday, reached Rs 1,51,078 per 10 grams on Friday. That means, within just five days, a huge increase of Rs 2,721 has been recorded in the price of gold.

The silver shined brighter

This week proved to be very expensive for silver buyers. According to IBJA, the price of silver on Friday was Rs 2,55,600 per kg, whereas on Monday it was Rs 2,44,237. This means that within a week there has been a huge jump of Rs 11,363 in the prices of silver. Silver prices continued to rise throughout the week.

Why are prices increasing?

Market experts believe that the hope of a peace agreement between America and Iran and the weakness in the US dollar have supported gold and silver. However, after strong US labor market data, there is a possibility that the Federal Reserve may keep interest rates high for a longer period. Despite this, the fear of supply disruption in the Strait of Hormuz and increasing tensions in West Asia have attracted investors towards gold as a ‘safe haven’ i.e. safe investment.

What will be the situation next?

Analysts say that currently the level of Rs 1,54,000 to Rs 1,55,500 remains a major resistance for MCX Gold. Whereas for silver the level of Rs 2,65,000 is very important. If tensions increase further, a further rise in prices may be seen, but this pace may also slow down once the dollar stabilizes.