The dollar plummeted, gold and silver prices rose! Silver rose by ₹5,000 and gold by ₹2,300
The weakening of the dollar index in the international market has led to a jump in silver prices by ₹5,000 per kg and gold prices by ₹2,300 per 10 grams in the Delhi bullion market. Global investors have begun withdrawing money from the dollar and investing in gold and silver, providing significant support to prices. Despite this surge in the domestic market, demand for jewelry remains strong due to the wedding season.
Due to the fall in the dollar and the decline in crude oil prices in the international market, gold and silver prices in India's capital, Delhi, saw a rise. Gold prices increased by ₹2,300,
while silver prices jumped by ₹5,000. There are reports that an agreement between Iran and the United States could be reached at any time, raising the possibility of a ceasefire, which would open the Strait of Hormuz.
According to experts, gold and silver prices may fluctuate in the coming days. Let us tell you what the expected prices of gold and silver could be in the country's capital, Delhi.
What is the price of gold and silver in Delhi?
Silver prices jumped by ₹5,000 to ₹2.42 lakh per kilogram in the national capital on Monday, while gold prices rose to ₹1.53 lakh per 10 grams due to softening crude oil prices and a weakening US dollar.
According to the All India Sarafa Association, the price of the white metal rose by ₹5,000, or 2.11 percent, to ₹242,000 per kilogram (including all taxes) from Friday's closing price of ₹237,000 per kilogram.
Gold of 99.9 percent purity also rose by ₹2,300, or 1.52 percent, to ₹153,800 per 10 grams (including all taxes).
It had closed at ₹151,500 per 10 grams in the previous session. Analysts said bullion prices improved due to 'value buying' (buying at lower prices) after the recent fall in precious metal prices.
Why did gold and silver rise?
Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, said gold prices improved on Monday as traders resorted to bargain buying; this was also supported by a weakening US dollar and a decline in oil prices.
He further said that precious metal prices are expected to remain sensitive to geopolitical developments in West Asia, which will continue to play a key role in determining market direction in the domestic market.
Gold and silver also became expensive in the international market
In the international market, spot silver prices rose 0.5 percent to US$73.37 per ounce, and gold prices rose 0.14 percent to US$4,682.80 per ounce. Praveen Singh, head of commodities at Mirae Asset Sharekhan, said spot gold was trading at US$4,680 per ounce, up about 0.2 percent;
this was due to softening of crude oil prices on the prospect of a ceasefire in the Iran conflict before US President Donald Trump's April 7 deadline.
However, he also said that the upside in gold prices could be limited due to strong US macroeconomic data. He added that encouraging employment data could keep bullion prices volatile and unstable.
What could be the situation going forward?
Kainat Chainwala, AVP, Commodity Research, Kotak Securities, said that geopolitics will remain the key factor this week, and developments surrounding the Strait of Hormuz are expected to overshadow previously scheduled macro data releases.
He further added that traders will closely monitor the FOMC minutes, US core personal consumption expenditure, and the Consumer Price Index.
Their impact on the market is likely to be limited until there is some significant stability in the geopolitical situation.
Gold Silver