Business Desk – Gold Silver Prices Today: On September 4, the price of gold increased for the second consecutive day in Delhi bullion market. Gold rose by Rs 1,400 to Rs 1,60,900 per 10 grams. Whereas silver remained stable at Rs 2,40,500 per kg. However, there was a decline in both gold and silver in the international market.
Silver stable at Rs 2.40 lakh
The reason for the rise in gold price in the domestic market is being attributed to good buying. On the other hand, investors are cautious ahead of US non-farm payrolls data. This data may give indications about the US economy and future interest rates, which may impact the prices of gold and silver.
Silver 40% below record level
The price of silver had crossed Rs 4 lakh per kg at the end of January this year. After this there was a sharp decline and the price came down by about 40%. According to Siddharth Khemka, Research Head, Motilal Oswal Financial Services, there is a concern about increasing silver reserves with dealers due to weak investment demand. This pressure may increase further with the arrival of about 2,000 tonnes of silver.
If demand remains weak, pressure will increase
Silver is used in many industries including electronics and solar panels. Apart from this, it is also a major medium of investment. If investment and industrial demand does not pick up, there may be pressure on silver prices due to increased availability in the market. Recent reports have also raised concerns about weak demand and large amounts of incoming silver.
Gold and silver weak in international market
In the international market, gold fell slightly to around $ 4,465 an ounce, while silver fell 0.38% to $ 66.72 an ounce. According to Saumil Gandhi, senior analyst at HDFC Securities, the prices of both the metals may remain in a limited range due to caution among traders ahead of the US employment data.
Market also keeps an eye on Fed's decision
America's inflation figures are to come next week. These data may have an impact on the interest rate policy of the Federal Reserve. The Fed will present its next monetary policy on September 16. If inflation increases, a strict stance can be taken regarding interest rates, which may impact gold prices. Therefore, in the coming days, investors will keep an eye on US inflation, employment data, dollar and interest rates.
