There is a bullish atmosphere in the commodity market before the festivals. Along with precious metals, the prices of industrial metals are also increasing. The dollar index has weakened to around 98 levels after the US Treasury Department expanded its bond buyback program.
Business News: Ahead of the festive season, there is a rise in the prices of precious and industrial metals in the domestic commodity market. With the increase in gold-silver prices, industrial metals like copper, aluminum and zinc have also become expensive. Due to this, there is a possibility of increasing pressure on the costs of electronics, home appliances, automobile and construction sector in the coming time.
According to market experts, weakness in the dollar at the international level and increase in demand for safe investments are supporting the prices of metals. If this rise continues for a long time, it may also affect the pockets of common consumers.
Gold crosses ₹1.64 lakh per 10 grams in Delhi
According to All India Association, on Monday, gold of 99.9 percent purity became costlier by Rs 900 to reach Rs 1,64,400 per 10 grams in Delhi's bullion market. Its closing price last week was Rs 1,63,500 per 10 grams. This rise in the price of gold has come amid increasing demand for safe investment. Investors often view gold as a relatively safe asset during times of global economic and geopolitical uncertainty. This is the reason why the effect of the boom in the international market is visible on the Indian market also.
Gold made new high level on MCX also
A strong rise in gold prices was also recorded in the domestic futures market. On MCX, gold touched a high of Rs 1,64,758 per 10 grams with a gain of 1.43 per cent. The price of gold in the international market reached the level of $ 4,729.70 an ounce on Monday. Factors like movement of dollar in the global market, interest rate expectations, inflation and geopolitical tensions are influencing gold prices.
Silver crosses ₹2.53 lakh per kg
Along with gold, silver also remains bullish. On Monday, the price of silver increased by Rs 3,500 per kg and reached the level of Rs 2,53,500 per kg. This is said to be the highest level in more than four months. This was the third consecutive trading session of rise in silver. In the international market, silver touched a high of $ 69.66 an ounce on Comex. Silver is supported by investment demand as well as industrial use.
Copper, aluminum and zinc also on the rise
Apart from precious metals, industrial metals have also seen a rise for some time. According to available data, copper has become costlier by 9.68 percent, aluminum by 4.88 percent and zinc by 15.48 percent in the last two months. The pace was even higher over a period of one year. During this period, the price of copper increased by 54.74 percent, aluminum by 38.45 percent, lead by 9.24 percent and zinc by 55.46 percent.
Increase in the price of industrial metals can have a direct impact on the production cost of many industries. Copper and aluminum are used extensively in electrical wires, ACs, fans and electronic equipment. Zinc and other metals are used in automobile, construction and manufacturing industries.