As the US dollar strengthened and tensions in West Asia eased, demand for safe-haven assets such as gold declined, losing its luster. Today, May 5, gold has lost its luster for the second consecutive day. After a day of stability, gold prices have fallen for the second consecutive day today. In these two days, the price of 24-carat gold has fallen by ₹1,320 per 10 grams, while 22-carat gold has become cheaper by ₹1,210. Specifically talking about today’s trade, in the national capital Delhi, the price of 24-carat gold (per 10 grams) has decreased by ₹10, and 22-carat gold has also become cheaper by ₹10. Talking about silver, after two consecutive days of stability, prices fell in Delhi today, with rates falling by ₹100 per kg.
City-wise gold rates
Silver slipped after two days of stability
In case of silver, prices have declined today after two consecutive days of stability. Earlier, in two consecutive days, the price of one kilogram of silver had increased by a whopping ₹15,000. As of today, the price in Delhi has fallen by ₹100 per kg, and silver is currently selling at ₹264,900. In other major metros—Mumbai and Kolkata—silver is also being sold at the same price. However, the price of one kilogram of silver in Chennai is ₹269,900, making it the costliest among the four major metros.
What is the future of gold?
According to Kranti Bathini, Research Director, WealthMills Securities, gold remains under constant pressure due to the strengthening dollar and high crude oil prices. When crude oil becomes expensive, the demand for dollars increases, which also affects gold prices. Apart from this, low expectations of interest rate cut in the US is also putting downward pressure on gold. Kranti Bathini says that after a bullish phase in the last few years, gold is currently going through a consolidation phase. Goldman Sachs believes that gold prices are going to rise due to purchases by global central banks and expectations of interest rate cuts in the US. However, Goldman Sachs expects gold prices to remain subdued in the short term. Goldman Sachs estimates that by the end of this year, the price of gold will reach ₹1.63 lakh per 10 grams ($5,400 per ounce).