A tremendous increase was witnessed in the capital of the country, Delhi, on Friday. While the price of silver has increased for the fourth consecutive day. Prior to this, gold prices reached record highs in overseas markets. On the other hand, there has been a rise in the price of gold in the futures market of the country. If experts are to be believed, further increases in the prices of gold and silver in Delhi are possible. Let us also tell you what the prices of gold and silver have become?
gold and silver boom
In Delhi, the capital of the country, the price of gold rose by Rs 1,200 on Friday to touch the highest level in two months – Rs 75,550 per 10 grams. Earlier on Thursday, gold had closed at Rs 74,350 per 10 grams. Meanwhile, gold with 99.5 per cent purity also rose by Rs 1,200 to Rs 75,200 per 10 grams. Its previous closing price was Rs 74,000 per 10 grams. All India Bullion Association said that the price of silver also continued to rise for the fourth consecutive trading session and its price increased by Rs 2,000 to touch Rs 89,000 per kg. The reason for this increase was increased consumption by industrial units and coin makers. In the last session, silver closed at Rs 87,000 per kg. With this, silver prices have strengthened by Rs 5,200 per kg in the last four sessions.
Why is the increase happening?
Traders attributed the sharp rise in gold prices to strong signals in international markets. Investors expect the US Federal Reserve to cut interest rates next week, pushing gold prices to a record high. Traders claim that in addition, purchases are also increasing due to weddings and festivals. Buyers are opting for gold, which is boosting demand. In July, after the government reduced basic customs duty on gold and silver from 15 per cent to 6 per cent, gold prices in local markets fell sharply by Rs 5,000 to Rs 71,050 per 10 grams.
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What do the experts say?
Kainat Chainwala, assistant vice president (commodity research) at Kotak Securities, said gold prices hit a new all-time high on Friday due to a weakening dollar. This is because investors expect the US Federal Reserve to cut interest rates next week. According to commodity market experts, lower interest rates are positive for bullion prices as they reduce the opportunity cost of holding non-interest-bearing assets, making them attractive for investors.
