Silver prices rise by Rs 7,000 and gold by Rs 3,700 during the wedding season; buyers are left sweating
On Monday, precious metal prices rose by nearly 3 percent in the national capital, Delhi. Silver rose by ₹7,000 to ₹2.37 lakh per kilogram, and gold reached ₹1.51 lakh per 10 grams, driven by renewed purchases by jewelers ahead of the wedding season. Let us also tell you what the gold and silver prices have reached.
The wedding season has begun in the country. This has also affected the prices of gold and silver. In the national capital, Delhi, gold and silver prices rose by more than 3 percent.
Meanwhile, the rupee's decline against the dollar also supported gold and silver. Experts predict fluctuations in gold and silver prices in the coming days.
However, gold and silver prices have declined in the national capital, Delhi, where gold prices have fallen by more than 21,000 rupees per ten grams. Silver prices have also fallen by 63,000 rupees per kilogram. Let us explain the current levels of gold and silver prices.
Gold becomes expensive during the wedding season
Precious metal prices rose nearly 3 percent in the national capital, Delhi, on Monday. Silver rose by ₹7,000 to ₹2.37 lakh per kilogram, and gold reached ₹1.51 lakh per 10 grams, driven by renewed buying by jewelers ahead of the wedding season.
According to the All India Sarafa Association, silver prices rose ₹7,000, or 3.04 percent, to ₹237,000 per kilogram (including all taxes),
up from Friday's closing price of ₹230,000 per kilogram. Gold of 99.9 percent purity rose ₹3,700, or 2.5 percent, to ₹151,500 per 10 grams (including all taxes).
Gold had closed at ₹147,800 per 10 grams in the previous trading session. Traders attributed this improvement to physical purchases ahead of the wedding season and favorable global market trends.
Why did gold and silver rise?
Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, said that gold prices saw a recovery on Monday, supported by buying after prices fell. A decline in US Treasury bond yields improved overall sentiment in the precious metals market.
He further added that the sharp change in the rupee also provided further support to domestic precious metals prices. The rupee initially strengthened after the Reserve Bank of India imposed restrictions on onshore long dollar positions to curb speculative activity.
Later, the rupee's gains were offset by strong corporate demand and higher oil prices. The rupee crossed the 95-per-dollar mark for the first time and hit a record low of 95.2350 against the US dollar. Gandhi said that the weakening rupee provided additional support to domestic gold prices.
How much did gold and silver become cheaper in March
Despite Monday's rally, precious metals have suffered significant losses this month. Since March 2, gold prices have fallen by ₹21,300, or 12.3 percent, while silver has fallen by ₹63,000, or 21 percent.
In international markets, spot gold rose by USD 38.68, or nearly 1 percent, to USD 4,531.67 per ounce, while silver was trading 1.35 percent higher at USD 70.72 per ounce.
Praveen Singh, head of commodities at Mirae Asset Sharekhan, said spot gold rose to around USD 4,530 per ounce as it continues to trade in a volatile and unstable manner, and traders are closely monitoring the US dollar and oil prices.
Gaurav Garg, Research Analyst at Lemon Markets Desk, said that despite the current gains, the overall sentiment in global markets remains cautious as gold has seen a massive fall of around 16 per cent this month, one of its biggest falls in decades.
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