On March 27, gold prices in the country witnessed another fall. In the capital Delhi, the price of 24-carat gold fell to ₹144,690 per 10 grams in the morning. Prices settled at ₹144,540 per 10 grams in Mumbai, Pune and Bengaluru. In the international market, the spot price of gold is $4,384.38 per ounce. Since the start of hostilities between Israel, the US and Iran on February 28, gold prices have fallen by 17 percent.
Gold rates in major cities
Gold Prices in Delhi: In Delhi, the price of 24-carat gold is ₹144,690 per 10 grams, while the rate of 22-carat gold is ₹132,640 per 10 grams.
Mumbai, Chennai and Kolkata: Currently, the price of 22-carat gold in Mumbai, Chennai and Kolkata is ₹132,490 per 10 grams, while the price of 24-carat gold is ₹144,540 per 10 grams.
Prices in Pune and Bengaluru: In both these cities, 24-carat gold is priced at ₹144,540 per 10 grams, and 22-carat gold is priced at ₹132,490 per 10 grams.
There is now a strong consensus in the market that America’s central bank—the Federal Reserve—will not cut interest rates this year. Just a few months ago, the market was expecting at least two rate cuts. The effect of high interest rates is that the attractiveness of investing in assets like gold—which do not earn any interest—reduces to some extent. As a result, and due to the ongoing conflict in the Middle East, gold prices currently remain under pressure.
According to Jatin Trivedi, Research Analyst at LKP Securities, gold prices are likely to continue to fluctuate as long as concerns about geopolitical tensions and inflation persist. Amit Goyal, Co-Founder and Chief Global Strategist, PACE 360, believes that gold and silver are no longer traditional ‘safe-haven’ investments. According to him, both these metals have gradually started behaving like ‘risk assets’ (risky investments). As a result, there is a risk that a ‘bubble’ (artificial increase in prices) could form in these assets in the future, which could then lead to a sharp decline in prices.
silver prices
Now if we talk about the second precious metal – silver – its prices have also declined. As of the morning of March 27, the price of silver was ₹249,900 per kg. In the international market, the ‘spot price’ (current price) of silver is $67.71 per ounce. In January this year, the price of silver had crossed the ₹400,000 mark.