Amid strong global trends, the price of gold in the local market of the country on Monday rose by Rs 200 to Rs 72,350 per 10 grams, while the price of silver rose by Rs 1,000 per kg. The futures market of the country is also witnessing a rise in the price of gold. Since the Federal Reserve indicated to cut interest rates in the month of September, the prices of gold and silver have increased. On the other hand, geopolitical tension is also at its peak. Let us also tell you how much rise is being seen in the prices of gold and silver in the country.
What were the prices of gold and silver?
In the local market on Monday, the price of gold rose by Rs 200 to Rs 72,350 per 10 grams, while the price of silver rose by Rs 1,000 per kg. According to the All India Bullion Association, in the last session, the yellow metal with a purity of 99.9 per cent had fallen to close at Rs 72,150 per 10 grams on Saturday. The price of silver rose by Rs 1,000 to Rs 83,500 per kg, which was Rs 82,500 per kg at the previous close. Meanwhile, gold with a purity of 99.5 per cent also rose by Rs 200 to Rs 72,000 per 10 grams. In the last trade on Saturday, it closed at Rs 71,800 per 10 grams.
Traders attributed the rise in gold prices to increased demand from local jewellers and strong trend in overseas markets. Globally, gold is trading at $2,481.80 per ounce on Comex with a gain of $8.40 per ounce. In international markets, silver has risen to $28.01 per ounce.
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Why is it increasing?
Saumil Gandhi, Senior Commodity Analyst at HDFC Securities, said the main reason for the surge in gold prices on Monday is geopolitical tension. Tension is being seen in the Middle East. Due to which there is an increase in safe haven demand. Gandhi said apart from this, traders have also increased their bets on aggressive interest rate cuts by the US Federal Reserve (Fed) this year after the yellow metal got further support from the recent weak macroeconomic data.
The influence of the Fed also
According to Manav Modi, Senior Commodity Research Analyst at Motilal Oswal Financial Services, gold prices remained stable after a sharp rise in the previous session, while on the other hand, falling US Treasury bond yields also boosted precious metals. Investors were convinced that the Federal Reserve would cut interest rates in September this year. Modi said traders have focused their attention on the US Consumer Price Index data due next week to gain insights into the possible direction of the Federal Reserve’s monetary policy. According to Jatin Trivedi, Vice President – ​​Research, Commodity and Currency Analyst at LKP Securities, gold prices are largely driven by rising tensions in the Middle East, especially concerns over a possible Iranian attack on Israel.
