If you are in the mood to buy gold, this is the right time. There has been a huge fall in the price of gold in the Delhi markets on the first trading day of the week. After which the prices dropped to Rs 74,000 per ten grams. On the other hand, a huge fall was also seen in the price of silver and the prices in Delhi fell by Rs 2000 per kg. Gold prices are looking completely flat in the overseas markets. According to experts, confusion has arisen among investors that interest rate cuts are not possible after the release of the US Central Bank’s employment data. Even if it happens, it will be less than expected. Due to which a fall in gold prices is being seen.
Gold and silver prices fall in Delhi
According to the All India Bullion Association, gold prices fell by Rs 700 to Rs 73,500 per 10 grams in the country’s capital Delhi on Monday. The yellow metal had closed at Rs 74,200 per 10 grams at the previous close on Friday. Meanwhile, gold with 99.5 per cent purity also fell by Rs 500 to Rs 73,350 per 10 grams, down from Rs 73,850 at the previous close. On the other hand, like gold, silver prices also fell by Rs 2,000 to Rs 83,800 per kg on Monday due to weak buying by industrial units and coin makers. In the last session, the silver metal closed at Rs 85,800 per kg. Domestically, traders attributed the fall in yellow metal prices to weak demand from local jewellers amid a weak overseas trend.
What is the situation in foreign markets?
On the other hand, gold and silver prices remain stable on the global market. According to Comex data, gold futures are quoted at $2,526.70 per ounce, up by only $2. On the other hand, spot gold prices are quoted at $2,499.30 per ounce, up by $1.89 per ounce. On the other hand, silver prices are down by less than one percent. Silver futures are quoted at $28.45 per ounce, up by 0.95 percent. At the same time, spot silver prices are quoted at $28.14 per ounce, up by 0.74 percent.
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Investors’ doubts increased
Saumil Gandhi, senior analyst at HDFC Securities (commodities), said gold fell on Monday as mixed US jobs data raised doubts over the size of the Federal Reserve’s next interest rate cut. According to Manav Modi, senior analyst – commodity research at Motilal Oswal Financial Services, gold prices fell to record lows late last week following mixed jobs data and comments from some Federal Reserve officials that cast doubt on an interest rate cut. Modi said traders are awaiting this week’s overall US economic data report, including inflation and the producer price index (PPI), to gauge the Fed’s next move on interest rates.
Waiting for inflation figures
Kainat Chenwala, AVP-Commodity Research, Kotak Securities, said Treasury Secretary Janet Yellen has tried to reduce fears of an economic crisis but amid recession concerns, traders are awaiting US inflation data this week, keeping gold steady. Yellen said there were no “flashing red lights” for the financial system and said the US economy had hit a soft spot despite weak job growth.
