Gold and silver prices recorded a sharp decline in Delhi’s bullion market on Friday. Silver prices fell by Rs 10,000 per kilogram in a single trading session, while gold prices declined by Rs 2,700 per 10 grams. The fall in domestic precious metal prices came despite gains in both gold and silver in the international market.
According to market experts, selling by investors and traders increased in the domestic market following the recent rise in precious metal prices. This selling pressure led to a sharp decline in gold and silver prices in Delhi’s bullion market despite positive signals from international markets. With bullion markets remaining closed on Saturday and Sunday, investors will be watching the direction of prices in the next trading session.
On Friday, silver prices in Delhi’s bullion market declined by Rs 10,000 to Rs 2,34,600 per kilogram. In the previous trading session on Thursday, silver had closed at Rs 2,44,600 per kilogram. The decline amounted to around 4 percent in a single trading day.
The sharp fall in silver prices drew attention from traders and investors. Silver had recorded a sustained rise in recent days, following which increased profit-taking is being considered a key reason for the decline in domestic prices.
Gold prices also declined sharply on Friday. Gold of 99.9 percent purity fell by Rs 2,700 to Rs 1,55,900 per 10 grams. The same gold had closed at Rs 1,58,600 per 10 grams on Thursday. The decline in domestic gold prices has been attributed to selling following the recent rise. Investors are currently monitoring global interest rates, movements in the dollar, crude oil prices and inflation-related indicators.
In contrast to the decline in the domestic market, precious metals recorded gains in the international market on Friday. Spot gold rose by $49.82, or 1.15 percent, to $4,366.58 per ounce. International silver prices also rose by around 2 percent to $64.77 per ounce.
According to Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, gold prices recorded some recovery in the global market, but the precious metal remains under pressure. He said gold is heading for a decline for the third consecutive week.
Market experts said higher crude oil prices have increased concerns over inflation globally. In addition, higher US Treasury bond yields and expectations of interest rate increases could put pressure on non-interest-bearing assets such as gold. On Friday, crude oil prices on the Multi Commodity Exchange (MCX) reached Rs 9,532 per barrel. Rising oil prices could affect inflation expectations and monetary policy decisions by central banks.
