There was a huge movement in the prices of precious metals in Delhi’s bullion market on Friday. This day was quite surprising for investors and buyers, because silver prices rose so much in a single day that the market was stunned. There has also been an increase in the price of gold of 99.9 percent purity, due to which the burden on the customers’ pockets has increased slightly.
Historic rise in silver and shine of gold
There was a huge jump of Rs 5,000 in the price of silver in Friday’s trade. With this, the price of silver jumped to Rs 2,37,000 per kg (including all taxes). The thing to note is that silver has completely broken the trend of falling for three consecutive days on Friday.
On the other hand, the upward trend in gold prices also continued. Gold of 99.9 percent purity became costlier by Rs 400 and closed at Rs 1,48,500 per 10 grams. In the earlier trading session, gold was at Rs 1,48,100, while silver closed at Rs 2,32,000 per kg.
Why did the prices increase? These are the main reasons
Market experts believe that there are two main reasons behind this rise. First, the weakness in the US dollar and second, heavy buying by investors at lower levels. In fact, at the beginning of this week, gold prices had come down significantly, due to which investors took advantage of the opportunity and started buying.
According to Saumil Gandhi, senior commodity analyst at HDFC Securities, a weak dollar and buying at cheaper prices strengthened gold and silver prices on Friday. This trend has again restored the confidence of investors in the market.
International market situation and way forward
While there is a bullish environment in the domestic market, the picture is slightly opposite in the international market. There has been a slight decline in the prices of gold and silver. Spot gold fell $17.57 to $4,106.25 an ounce, while silver also declined by about 1 percent. According to Praveen Singh, Head of Commodities, Mirae Asset Sharekhan, due to the news of resumption of talks between America and Iran, the prices of precious metals globally are currently limited in a range.
Now the market’s eyes are fixed on America’s Consumer Price Index (CPI) data coming next week. These figures will decide what stance the US Federal Reserve takes regarding interest rates. If expectations of interest rate cuts increase, gold and silver prices may see more volatility in the coming days.
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