Heavy profit-booking was seen in gold and silver prices for the second consecutive day. A sharp fall in the prices of precious metals was recorded in the domestic bullion market on Friday amid signs of some easing in global tensions. Silver prices fell to Rs 13,000 in Delhi, while gold also fell below its record level. However, during the closure of Indian markets, international markets witnessed huge fluctuations and recovery periods.
Domestic market: Silver at Rs 2.55 lakh
According to data from ‘All India Bullion Association’, silver prices fell by a huge 4.85% on Friday. The white metal fell by Rs 13,000 to close at Rs 2,55,000 per kg (including all taxes). Earlier on Thursday, it had closed at Rs 2,68,000 per kg.
The shine of gold has also faded. Gold of 99.9% purity fell by Rs 3,400 or 2.12% to close at Rs 1,57,200 per 10 grams, compared to Rs 1,60,600 in the previous session. Traders say that this fall in domestic prices is mainly due to profit booking at higher levels.
Fluctuations seen in prices in the global market
While prices fell in Indian markets, the international market witnessed huge fluctuations on Friday. Global prices recovered by more than 4% after initial decline.
- Silver: Spot silver recovered from its intra-day low ($64.08 an ounce) and reached $74 an ounce, up 4.26%. At one time it had seen a decline of about 10%.
- Sleep: Spot gold also weakened to a low of $ 4,654 an ounce in early trade, but later it gained 2.23% ($ 106.74) and was seen trading at $ 4,887.30 an ounce.
What is the reason for this uproar?
According to experts, the reason behind this instability is the ongoing talks between America and Iran in Oman and uncertainty regarding the monetary policy of the US Federal Reserve.
Praveen Singh, head of commodities at Mirae Asset Sharekhan, said weak US jobs data had supported the precious metals, but hopes of a breakthrough in US-Iran talks limited further gains in prices. He said there continues to be significant volatility in the bullion complex due to the ongoing meeting in Oman and the future direction of US monetary policy.
The current market movement indicates that the tug of war between geopolitical developments and economic data will continue. While domestic investors are in a mood to reap profits, there is a sharp reaction to every news in the global market.
