Mumbai, March 23 (IANS). Amidst the increasing conflicts in the Middle East, a big fall was seen in precious metals (gold and silver) on Monday, the first trading day of the week. Due to increasing tension in the US-Iran war, there was a huge jump in the prices of crude oil on Monday, due to which there was a decline in the commodity market including the stock market.
According to the data of India Bullion and Jewelers Association (IBJA), on Monday, the price of 999 purity gold reached Rs 1,39,569 per 10 grams, whereas earlier on Friday, the price of 999 purity gold was Rs 1,47,218. That means the price of gold fell by Rs 7,649 in a single day.
Whereas, if we talk about silver, according to IBJA, the price of silver of 999 purity came down to Rs 2,19,260 per kg on Friday, which was Rs 2,32,364 per kg on last Friday. That means, in a single day the price of silver decreased by Rs 13,104 per kg.
Let us tell you that on IBJA last Friday, the price of gold of 999 purity was Rs 1,47,218 per 10 grams, while the price of silver of 999 purity was Rs 2,32,364 per kg.
At the same time, a fall in the prices of gold and silver was also seen on the Multi Commodity Exchange (MCX). Till the time of writing the news (around 5.28 pm), gold for April delivery was seen falling by 3.55 percent i.e. Rs 5,133 and trading at Rs 1,39,359 per 10 grams. At the same time, silver for May delivery was seen trading at Rs 2,20,389 per kg with a fall of 2.81 percent i.e. Rs 6,383.
On Monday, after opening at Rs 1,40,158, gold for delivery on April 2 reached the highest level of Rs 1,40,659 and at one time reached the day’s lowest level of Rs 1,29,595 per 10 grams.
At the same time, after opening at Rs 2,17,702, silver for delivery on May 5 was at the day’s highest level of Rs 2,23,967 and at one time reached the day’s lowest level of Rs 1,99,643 per kg.
According to experts, gold and silver prices have been declining for some time amid instability in the global market due to increasing tensions in West Asia.
Experts say renewed inflation fears caused by the US-Iran war have dented expectations of the US Federal Reserve cutting interest rates in the near future. This has increased demand for the US dollar in the last three weeks after the start of the US-Iran war.
According to experts, due to the dovish stance of the US Federal Reserve and other central banks around the world, US Treasury yields and the US currency may outperform other assets. This is why despite the increasing US-Iran war, the prices of gold and silver are falling. These are mainly influenced by the US-Iran war and crude oil prices. On the other hand, the market is under pressure due to inflation fears, while gold and silver remain under pressure due to the tough stance of the US Federal Reserve and other central banks.
–IANS
DBP
