The prices of gold and silver have once again seen a major surge in the bullion market of the country’s capital, Delhi. Both precious metals have jumped to their highest level in a month. On Wednesday, the price of gold in Delhi reached Rs 1.5 lakh per ten grams, while the price of silver registered a massive increase of Rs 6200 per kilogram in one stroke. Market experts believe that the ongoing special talks between the US and Iran are behind this turmoil in the prices of gold and silver, after which there is hope of reopening the Strait of Hormuz. Let us know at what prices gold and silver are being sold from foreign markets to the local market of Delhi.
Gold prices rise above Rs 1.5 lakh
On Wednesday, gold prices in the national capital’s bullion market witnessed a sharp rise for the second consecutive day, reaching a one-month high of ₹1.5 lakh per 10 grams. According to information received from the All India Sarafa Association, the price of 99.9 percent pure gold increased by ₹2,500 (about 1.7 percent), closing at ₹1,50,000 per 10 grams, including all taxes. Its previous closing price on Tuesday was ₹1,47,500 per 10 grams. It is worth noting that the precious metal last traded at around this level on July 6, when it closed at ₹1,50,650 per 10 grams.
Silver also saw a bumper jump of Rs 6200.
After remaining fairly stable during the previous session, silver prices have now rebounded sharply. Silver prices have surged by ₹6,200 to reach a one-month high of ₹2,32,700 per kilogram (including all taxes). The white metal had closed at ₹2,26,500 per kilogram in the previous trading session. Looking at past records, silver last touched this level around July 9th, when it closed at ₹2,32,000 per kilogram.
The boom continues in foreign markets as well
Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, says that the main reason for gold prices reaching a one-month high is the growing hopes of a possible agreement between the US and Iran, which could pave the way for reopening the Strait of Hormuz. This has somewhat reduced the concerns about energy-related inflation and has also affected the expectations of further monetary tightening by the US Federal Reserve. If we talk about global markets, spot gold jumped by US$ 85.28 (ie about 2.09 percent) to reach $ 4,162.76 per ounce, while silver also rose by more than 3 percent and was seen trading at $ 61.35 per ounce.
Know why the prices of gold and silver are skyrocketing?
Giving information about this, Praveen Singh, Commodities Head of Mirae Asset ShareKhan, said that globally spot gold is trading at $4,160 per ounce with a huge gain of 2 percent. The main reason for this is the fall in crude oil prices, which has reduced the fears of increase in interest rates by the Federal Reserve. However, Praveen Singh also clarified that despite the hopes of progress in US-Iran talks, the decline in crude oil prices was halted and the prices once again moved upwards after Yemen’s Houthi rebels threatened to attack Saudi Arabian tankers in the northern Red Sea.
Investors are eyeing US data.
Jatin Trivedi, VP, Commodity and Currency Research Analyst at LKP Securities, says that market participants are currently eagerly awaiting new signals from the Federal Reserve regarding interest rates. Investors are closely monitoring the US Additional Employment (ADP) data and the Non-Farm Payrolls report, due later this week, as well as the unemployment rate. Trivedi believes that the next major movement in gold and silver prices could occur as soon as these global data are released.