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Gold-Silver Price: There was a big jump in the prices of gold and silver on Thursday and the price of gold became costlier by Rs 600 after falling for two days. Silver also showed a huge rise of Rs 1,800 today.
New Delhi. Once again there is a bumper rise in the prices of gold and silver. The softness that prevailed for a few days after the festivals is now ending and on Thursday, gold became costlier by Rs 600 per 10 grams in the spot market. Earlier, there was a decline in the spot price of gold for two consecutive days. There was a three-fold jump in the prices of silver and the price increased by Rs 1,800 per kg. This rise in both the precious metals is due to the fluctuations in the global market.
According to the All India Bullion Association, the price of gold of 99.5 percent purity increased by Rs 600 to Rs 1,24,100 per 10 grams (including all taxes). On Tuesday it had closed at Rs 1,23,500 per 10 grams and bullion markets were closed on Wednesday due to the holiday of Prakash Gurpurab Sri Guru Nanak Dev. In the local bullion market, the price of gold of 99.9 percent purity closed at Rs 1,24,100 per 10 grams in the last market session.
Silver rises by Rs 1,800
Along with gold, silver prices increased by Rs 1,800 on Thursday to Rs 1,53,300 per kg (including all taxes). On Tuesday it closed at Rs 1,51,500 per kg. Globally, spot gold rose by $ 28.96 or 0.73 percent to $ 4,008.19 an ounce, while spot silver was trading at $ 48.60 an ounce, up 1.22 percent.
Why are prices rising?
Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, said the rise in gold prices on Thursday was due to demand for safe haven investments and a slight decline in the US dollar. The ongoing US government shutdown has become the longest ever and there is no solution in sight. The lengthy shutdown has created uncertainty in financial markets, favoring precious metals as safe haven investments.
Pressure on the dollar is also increasing
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.29 percent to 99.97, having hit a multi-month high in the previous session, also supporting the precious metal. Jatin Trivedi, VP Research Analyst (Commodity and Currency), LKP Securities, said optimism around the US-China trade deal could limit further upside in gold prices. For now, the market will keep an eye on US manufacturing and non-manufacturing PMI data.
