New Delhi: A strange contradiction was seen in the bullion market on Tuesday amidst the wedding season and global cues. While on one hand the shine of gold has increased, on the other hand there has been a huge decline in the prices of silver. Silver prices fell in New Delhi on Tuesday, while gold managed to rise for the second consecutive day. It is important for investors and buyers to understand these fluctuations as prices continue to hit new record levels.
Silver price slipped to Rs 2.64 lakh per kg
On Tuesday, silver buyers got a big relief, while investors got a shock. According to All India Bullion Association data, silver prices in the national capital fell by Rs 7,500, or nearly three per cent, to Rs 2.64 lakh per kg.
Silver had closed at Rs 2,72,000 per kg on Monday, which fell to Rs 2,64,500 (including all taxes) on Tuesday. Market analysts believe that this decline has occurred due to sluggish industrial demand and global pressure.
Gold prices rise for the second consecutive day
Unlike silver, gold prices continue to be on an upward trend. The price of gold of 99.9 percent purity jumped by Rs 2,200, or 1.4 percent, to Rs 1,60,700 per 10 grams. In the previous trading session, gold had closed at Rs 1,58,500 per 10 grams. Traders say that this rise in gold is being seen due to continuous buying by jewelers and investors. Despite the strong US dollar, gold has maintained its lead.
What are the experts saying?
According to Saumil Gandhi, Commodities Senior Analyst at HDFC Securities, gold was trading marginally higher on Tuesday as traders awaited fresh macroeconomic signals. He said that in the near term, the market may remain in a ‘consolidation phase’, due to which the prices of gold and silver will keep increasing and decreasing within a certain range. At the same time, the spot price of silver in the international market fell by 1.37 percent to $ 82.16 an ounce, while gold was trading with a slight decline at $ 5,052.43 an ounce.
Eye on these figures of America
Jatin Trivedi, VP Research Analyst, LKP Securities, says market participants are now waiting for US retail sales data. After this, unemployment and non-farm payroll figures are also going to come this week.
Trivedi warned that these data releases could create volatility in the market, as they would determine the direction of the Federal Reserve’s upcoming policies and interest rates. On this basis the next movement of bullion prices will be determined.
The turmoil in the bullion market shows that prices are not stable yet. While domestic demand is supporting gold, global cues are putting pressure on silver. Investors are advised to keep an eye on US economic data, as prices may see more volatility in the coming days.
