After a sharp rise, the shine of gold and silver has once again faded due to profit-booking. After a day of stability, the prices of both the metals have fallen for the second consecutive day today. In the national capital Delhi, the price of 24-carat gold fell by ₹10 per 10 grams today, while 22-carat gold also became cheaper by ₹10. In the last two days, the price of 24-carat gold has fallen by ₹10,330 per 10 grams and the price of 22-carat gold has fallen by ₹9,460. Earlier, after a day of stability, the price of 24-carat gold (per 10 grams) fell by ₹12,110 and 22-carat gold by ₹11,100 for four consecutive days. Talking about silver, the price of one kilogram of silver in Delhi has also fallen for the second consecutive day. After a one-day pause, the price of one kg silver has fallen by ₹15,100 in the last two days.
After a day of stability, silver slipped again for the second consecutive day
In case of silver, after a day of stability, its price in Delhi has fallen by ₹15,100 per kg in the last two days. Before that one-day halt, the price of one kilogram of silver had fallen by ₹30,000 for four consecutive days. As of today, the price in Delhi has dropped by ₹100 per kg, and the metal is currently selling at ₹229,900. Among other major metros, silver prices are similar in both Mumbai and Kolkata. However, the price of one kilogram of silver in Chennai is ₹234,900—making it the most expensive among the four major metros.
Reason for fading of shine of gold and silver
Despite global tensions, the weakness seen in gold and silver prices has surprised investors. Nevertheless, both the metals remain under pressure due to increasing uncertainty in the market and global economic cues. The increasing conflict between America and Iran is further increasing uncertainty in the market. The Strait of Hormuz is vital for oil supplies around the world, and Iran has threatened that if the US attacks its power plants, it will retaliate by attacking the Gulf countries’ energy and water infrastructure and completely closing the Strait of Hormuz. This has increased market volatility.
Dr. V.K., Chief Investment Strategist, Geojit Investments. According to Vijayakumar, gold and silver prices usually strengthen during times of war or global crisis, as investors look for safe-haven assets; However, there was already a lot of buying before this situation, so now prices seem to be returning to equilibrium.