Heavy Fall in Gold-Silver Prices
Amid weak domestic demand and sluggish global trends, gold and silver prices saw a sharp decline in Delhi’s bullion market on Monday.
Gold price fell by 9,050 rupees to 1,43,600 rupees per 10 grams. This is the rate for 99.9 percent pure gold. Last Friday, gold closed at 1,52,650 rupees per 10 grams.
Silver price also saw a big drop. On Monday, silver fell by 10,500 rupees to 2,30,000 rupees per kilogram, while it had closed at 2,40,500 rupees per kilogram last Friday.
According to the All India Bullion Association, this decline in gold and silver prices is due to weak demand and sluggish trends in global markets.
Reasons for the fall in Gold-Silver prices
Saumil Gandhi, Senior Commodity Analyst at HDFC Securities, stated that the decline in precious metals, which began last week, intensified further on Monday. Spot gold reached a four-month low in day trading.
According to Gandhi, rising tensions in the Middle East led to an increase in crude oil prices, which raised inflation concerns. This strengthened the possibility of adopting a tight monetary policy. He said that the fear of a tight monetary policy is increasing US bond returns and strengthening the dollar, further putting pressure on gold and silver.
Heavy fall in gold-silver prices in the international market also
In the international market, spot gold fell by 227.42 dollars, or 5.06 percent, to 4,263.73 dollars per ounce. Silver also dropped by 4.25 dollars, or 6.3 percent, to 63.53 dollars per ounce.
Praveen Singh of Mirae Asset Sharekhan stated that prices remained under pressure due to rising interest rate expectations, and gold continued its decline in foreign markets. He added that gold prices fell by more than 10 percent last week, which is considered the worst weekly decline in the last 40 years.
