Amidst the increasing tension in the Middle East (neighboring countries), a big news is coming from the Indian bullion market. Silver prices have gained rocket-like speed in the country’s capital Delhi. Silver prices have now crossed all records and crossed Rs 2.75 lakh per kg. On the other hand, if you are thinking of buying gold, then it is a matter of relief for you because no change has been seen in the prices of gold.
According to the latest report, the price of 10 grams of gold remained at Rs 1.62 lakh in the national capital Delhi on Monday. But on the contrary, the shine of silver increased further and it reached the level of Rs 2.76 lakh per kg. Market experts say that this big jump in the price of silver has happened due to the new restrictions imposed by the government on the import of silver and the weakness of the rupee against the US dollar.
Silver gained momentum, gold remained sluggish
According to the All India Bullion Association, a direct increase of Rs 1,000 per kg was recorded in the price of silver on Monday. After this surge, the price of silver increased to Rs 2,76,000 per kg (including all taxes). Let us tell you that in the last trading session i.e. when the market closed on Friday, silver was at Rs 2,75,000 per kg. On the other hand, there was no movement in the price of gold of 99.9 per cent purity in the bullion market and it remained stable at Rs 1,62,800 per 10 grams without any change.
Why did silver suddenly become expensive?
Market analysts say that despite the recessionary environment in the global market, gold and silver prices remain strong in the domestic market. Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said that gold prices remained stable in the domestic market on Monday. In the previous session, heavy selling of gold was seen due to weakness in the international market.
Despite this, there was not much fall in the prices in the Indian market, as the Indian Rupee weakened further to reach a record low of around 96.37 against the US Dollar. According to Saumil Gandhi, this weakness of the rupee prevented the gold prices from falling in the domestic market.
Along with this, the market has also been deeply affected by the big decision of the Central Government, in which the import of almost all forms of silver has been banned with immediate effect. The government has taken this step to reduce the increasing pressure on the rupee and to stop the import of non-essential items. Experts believe that this decision will reduce the inflow of silver in the country, due to which the premium on silver in the local market may increase further in the coming days.
What is the condition of gold and silver in the global market?
If we talk about the international market, the environment there appeared a bit dull. In the international market, spot gold was trading with a slight decline at $ 4,535.23 an ounce. At the same time, silver also fell by about 1 percent to $ 75.42 an ounce. Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said that the rise in the prices of US dollar and crude oil since last week continued on Monday also, due to which gold prices fell in the international market.
Meanwhile, the summit between the US and China ended on a largely positive note as US President Donald Trump did not raise contentious issues like technology, trade and tariffs. According to Praveen Singh, this led to a rise in global bond yields, which put downward pressure on gold prices.
Jatin Trivedi, Research Analyst (Commodity and Currency) of LKP Securities, said that at present, the eyes of investors are focused on the ongoing geopolitical developments between America and Iran as well as the fluctuations of Rupee-Dollar, due to which there may be movement in the bullion market in the coming days also.
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