New Delhi. The trend of falling prices of gold and silver continues. On Tuesday, the price of silver in Delhi's bullion market fell by Rs 4,000 to Rs 1.98 lakh per kg. After about 10 months, the price of silver has reached below the level of Rs 2 lakh. At the same time, the price of gold also declined by Rs 500.
According to All India Bullion Association, silver had closed at Rs 2.02 lakh per kg in the last trading session. On Tuesday its price fell to Rs 1,98,000 per kg. Similarly, the price of gold of 99.9 percent purity fell by Rs 500 to Rs 1,45,800 per 10 grams, whereas on Monday it was Rs 1,46,300 per 10 grams. These prices are quoted inclusive of all taxes.
Pressure on precious metals due to dollar strength
Gold and silver prices have come under pressure due to weakness in the international market and strengthening of the US dollar. According to Jatin Trivedi, Commodity and Currency Research Analyst of LKP Securities, the effect of weakness of precious metals in the global market is also visible on domestic prices. According to him, gold prices may remain volatile in the domestic market in the near future.
Decline in foreign market also
In the global market, spot gold fell to $ 4,011.44 an ounce, while silver fell by more than one percent to $ 53.41 an ounce. According to market analysts, silver is showing more weakness than gold. Selling pressure has increased due to trading below the level of $ 54 an ounce. Concerns regarding industrial demand are also affecting silver prices.
Investors keep an eye on the Federal Reserve meeting
Investors are adopting a cautious approach ahead of the US Federal Reserve's monetary policy meeting. The decision on interest rates and signals regarding the further policy of the Central Bank can decide the direction of gold and silver prices. Market experts say that the movement of the dollar, global demand and signals related to interest rates will affect the prices of precious metals in the coming days. However, whether prices will fall further or bounce back will depend on market conditions.