Gold and silver prices started touching the sky again. In the capital Delhi, gold and silver prices made a strong comeback on Tuesday after a sharp fall of three days. A sharp rise in silver was recorded amid strength in global markets and weakness in the US dollar, while gold prices also strengthened.
Silver prices rise by Rs 24,000
According to All India Bullion Association, silver prices rose by ₹24,000, or 9.23 per cent, to ₹2,84,000 per kg (including all taxes). On Monday, silver fell by ₹ 52,000 and closed at ₹ 2,60,000 per kg. Earlier in the three trading sessions, silver prices had fallen by a total of ₹ 1,44,500 i.e. about 36 percent. On January 29, silver had reached a record level of ₹ 4,04,500 per kg.
Gold prices rise by Rs 5000
Recovery was also seen in gold. Gold of 99.9 per cent purity rose by ₹5,000, or 3.3 per cent, to ₹1,57,700 per 10 grams. On Monday it had closed at ₹1,52,700 per 10 grams. However, gold is still below record levels. On January 29, gold had reached an all-time high of ₹ 1,83,000 per 10 grams, from where till now it has fallen by about ₹ 30,300 i.e. about 17 percent.
Market analysts say that after the recent fall, investors booked profits, but now the softening in prices is being seen as a buying opportunity. According to Saumil Gandhi, Commodity Senior Analyst, HDFC Securities, gold fell to its lowest level in four weeks due to the sharp fall after the record rise, after which it saw a partial recovery. In silver too, after two days of heavy selling, bottom fishing supported the prices.
Condition of gold and silver in international market
Domestic trends were also reflected in international markets. Spot silver jumped 12.07 per cent to USD 88.77 an ounce, while spot gold was seen up 5.91 per cent at USD 4,935.49 an ounce.
Kainat Chenwala, AVP Commodity Research, Kotak Securities, said that both the precious metals have seen a sharp recovery. This surge has come after a decline of more than 15 to 30 percent in the last two sessions. According to him, the recent selloff was fueled by higher margin requirements and fears that the US Fed’s monetary policy easing would be delayed.
On further trends, he said that volatility may remain in gold and silver. Investors will keep an eye on the upcoming US employment data, which may indicate the timing of the Fed’s next interest rate cut. Additionally, activity in China’s markets will also be key, where the premium differential between Shanghai and COMEX had previously fueled extraordinary volatility in silver. There is a possibility of strong movement in the market even after the Chinese New Year holidays.
