gold and silver
On Monday, gold prices in the country's capital Delhi fell by Rs 600 to Rs 1.55 lakh per 10 grams. The decline came after US President Donald Trump rejected Tehran's response to Washington's peace proposal, raising fears of renewed conflict in Middle East Asia and sending crude oil prices higher. In an effort to save the country's external balance, Prime Minister Narendra Modi's appeal to postpone non-essential gold purchases for a year also put additional pressure on gold. Let us also tell you what the prices of gold and silver have become…
According to All India Bullion Association, gold of 99.9 percent purity fell by Rs 600 to Rs 1,55,300 per 10 grams (including all taxes). On Friday it closed at Rs 1,55,900 per 10 grams. Saumil Gandhi, senior analyst of commodities at HDFC Securities, said that the pressure on gold increased on Monday because uncertainty in global markets increased again due to new obstacles in US-Iran talks. He further said that the rejection of the latest proposals sent by both sides has again raised concerns about a prolonged conflict.
This sent crude oil prices higher and inflation concerns re-emerged, strengthening expectations of tighter monetary policy adoption by global central banks, including the US Federal Reserve. Silver prices rose by Rs 3,700, or 1.42 per cent, to Rs 2,65,000 per kg (including all taxes). In the last session, this white metal had closed at Rs 2,61,300 per kg. Gaurav Garg, Research Analyst at Lemonn Markets Desk, said that there was a slight rise in silver, which benefited from stability in retail demand amid the upcoming wedding season.
In international markets, spot gold fell more than 1 per cent to US$4,661.68 an ounce, and silver also traded marginally lower at US$80.28 an ounce. Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said gold witnessed slight weakness as markets reacted cautiously to negative developments related to the US-Iran peace proposals. Reports suggest that the terms of the proposals have again been rejected and fears of a re-escalation of conflict have increased. He further said that uncertainty has kept pressure on global risk sentiment, while rising crude oil prices are once again raising inflation concerns in the markets.
