Rise in gold prices: An increase of Rs 600 was recorded in the prices of gold in Delhi’s bullion market. With this increase, the price of gold of 99.9 percent purity in Delhi reached Rs 1,56,800 per 10 grams. Last week on Friday, the price of gold closed at Rs 1,56,200 per 10 grams. However, there was no change of any kind in the price of silver on Monday for the second consecutive day. According to local traders, silver prices remained steady at Rs 2,40,000 per kg for the second consecutive session.
Gold prices got support due to weak dollar
“Gold rose on Monday,” said Saumil Gandhi, senior analyst (commodity), HDFC Securities. This was supported by a weak dollar and reduced expectations of a tight monetary policy by the Federal Reserve after weak US economic data.” He said last week’s modest US inflation data, as well as weak employment and retail sales data reduced expectations of further tightening of monetary policy and kept pressure on the dollar, which improved demand for the precious metals.
Gold and silver prices increased in international markets also
This improvement was also seen in the international markets, where spot gold was trading 0.48 percent higher at $ 4,397.59 an ounce. Silver rose more than 1 percent to $65.58 an ounce. “Spot gold was trading 0.5 per cent higher at $4,398 an ounce and is expected to remain positive due to dollar weakness and oil prices in a range-bound manner,” said Praveen Singh, Head of Commodity at Mirae Asset Sharekhan. However, geopolitical situation is also under watch.
Donald Trump preparing to impose more economic sanctions on Iran
Praveen Singh said that US President Donald Trump is preparing to impose more economic sanctions on Iran. There are already 2,200 sanctions in place in 2018, including a continuing blockade of Iran’s ports. Jatin Trivedi, commodity and currency research analyst at LKP Securities, said market participants will keep an eye on the details of the Federal Reserve’s FOMC meeting this week for further signals on the US central bank’s interest rate outlook and the next direction of bullion prices.