On Monday, a fall in gold and silver prices was seen in the national capital. Silver became cheaper by ₹1,800, and settled at ₹2.45 lakh per kg. At the same time, gold fell by ₹300 to ₹1.55 lakh per 10 grams. Bullion market will remain closed on Tuesday on the occasion of Dr. Babasaheb Ambedkar Jayanti.
Silver fell by almost 1%
According to the All India Bullion Association, silver prices fell ₹1,800—or about 1%—to ₹2,45,200 per kg (including taxes). Earlier, on Friday, it had closed at ₹2,47,000 per kg. 24-carat gold fell ₹300 to ₹1,55,000 per 10 grams; In the previous session it was at ₹1,55,300 per 10 grams.
main reason for decline
According to HDFC Securities analyst Saumil Gandhi, the weekend talks between the US and Iran did not yield any concrete results. This cooled down the market environment and put downward pressure on gold and silver prices. He said that after this news, both the US dollar and bond yields saw a rise, due to which selling in precious metals increased.
Pressure in global markets too
A fall in the prices of gold and silver was also seen in the international markets. Spot silver fell 2.09% to $74.31 an ounce, while gold fell $25.92 to $4,722.26 an ounce.
Effect of profit booking
According to Jatin Trivedi of LKP Securities, there were also reports that the US may deploy military forces to secure the Strait of Hormuz and possibly close this route completely. Due to this, investors started booking profits, which later had an impact on gold prices. However, after the initial decline, prices saw a slight recovery, and gold climbed back above the $4,700 level.
