Gold and silver prices declined on Monday, with domestic rates under pressure due to a ber US dollar and a rise in US bond yields.
In Delhi, 24-carat gold traded at Rs 148,210 per 10 grams, while 22-carat gold was priced at Rs 135,890 per 10 grams. In Mumbai, 24-carat gold was at Rs 148,080 per 10 grams and 22-carat gold at Rs 135,740 per 10 grams. Over the past week, 24-carat gold had increased by Rs 2,100 and 22-carat gold by Rs 1,950. On Friday, March 28, 24-carat gold in the Delhi bullion market had closed at Rs 147,800 per 10 grams, down Rs 1,900 or 1.3 percent.
Price Decline Driven by Global Factors
The decline in gold prices is attributed to a rise in US bond yields, a ber US dollar, and geopolitical uncertainty. Tensions in West Asia involving Israel, the United States, and Iran have pushed crude oil prices higher, raising concerns over inflation. Typically, geopolitical tensions lead investors to increase allocations to safe-haven assets such as gold and silver; however, investors are currently refraining from such investments due to inflation risks and are withdrawing funds from the market.
City-wise Gold Prices
Gold prices showed variation across major cities. In Delhi, 24-carat gold traded at Rs 148,210 per 10 grams and 22-carat gold at Rs 135,890 per 10 grams. In Mumbai, 24-carat gold was priced at Rs 148,080 per 10 grams and 22-carat gold at Rs 135,740 per 10 grams. In Chennai, 24-carat gold was at Rs 149,010 per 10 grams and 22-carat gold at Rs 136,590 per 10 grams. In Kolkata, Hyderabad, and Pune, 24-carat gold traded at Rs 148,080 per 10 grams and 22-carat gold at Rs 135,740 per 10 grams. In Jaipur, Lucknow, and Chandigarh, 24-carat gold was at Rs 148,210 per 10 grams and 22-carat gold at Rs 135,890 per 10 grams. In Bhopal, 24-carat gold was priced at Rs 148,110 per 10 grams and 22-carat gold at Rs 135,790 per 10 grams.
Silver Prices Decline
Silver prices also declined. On March 30, silver fell to Rs 244,900 per kilogram. Over the past week, silver witnessed fluctuations but settled near previous levels. On Friday, silver in the Delhi bullion market declined by Rs 11,250, or around 5 percent, to Rs 230,000 per kilogram. In the international market, spot silver was at $68.12 per ounce. In January, silver prices had crossed Rs 400,000 per kilogram.
Global Market Impact
Globally, rising US bond yields and a ber dollar have impacted gold and silver prices. Spot gold in the international market was at $4,416 per ounce, while Brent crude traded above $115 per barrel. These global factors have made investors cautious about allocating to safe-haven assets, contributing to the decline in domestic gold and silver prices.
