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After continuous rise, gold and silver prices witnessed fluctuations in Indian and global markets. Investors await the U.S. Federal Reserve’s policy outcome while geopolitical tensions and trade talks impact precious metal demand, causing short-term instability in bullion prices.
India is expected to see significant fluctuations in gold price
New Delhi: Gold and silver prices, which had been rising steadily for the past few days, are now showing some decline. While gold and silver prices were continuously increasing in Indian markets, the trends in the futures and spot markets now appear mixed.
According to the Indian Bullion and Jewellers Association (IBJA), 24-karat gold reached ₹1,20,628 per 10 grams, while silver was trading at ₹1,46,633 per kilogram.
These rates were even higher in the Delhi bullion market, where gold reached ₹1,24,400 per 10 grams and silver ₹1,51,700 per kilogram.
On Wednesday, gold prices in the national capital witnessed a sharp surge of ₹2,600, halting the two-day decline. Gold of 99.5% purity closed at ₹1,23,800 per 10 grams. Similarly, 99.9% pure gold also rose from approximately ₹1,21,800 to around ₹1,24,400.
Silver prices also saw a strong increase. Compared to Tuesday's ₹1,45,000 per kilogram, it closed at ₹1,51,700 per kilogram on Wednesday.
Gold and silver prices also fluctuated internationally. Spot gold rose by approximately 1.95% to $4,029 per ounce, while silver climbed to $48.40 per ounce. Investors turned to gold as a safe-haven investment ahead of the Federal Reserve's policy meeting, which supported prices.
Gold and Silver Prices Continue to Fall in India
On the MCX, the December futures contract for gold fell by ₹176 to ₹1,19,470 per 10 grams. However, silver futures prices saw a surge, rising by ₹451 to ₹1,44,793 per kilogram.
In the COMEX market, gold futures were also trading down by approximately 0.4% at $3,967 per ounce, while silver saw a slight increase.
Experts say that rising tensions in the Middle East and increased demand for safe-haven assets pushed gold prices to the $4,000 per ounce level and a potential 0.25% interest rate cut by the Federal Reserve could limit the downside in prices.
Moreover, investors are now closely watching the US monetary policy and the outcome of US-China trade talks, which will determine the trend for gold and silver in the coming days.
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Overall, the current fluctuations in gold and silver prices are dependent on global economic conditions, geopolitical tensions, and the Federal Reserve's policy.
Decisions related to interest rates and international trade in the near future will determine the direction of these precious metals.
