Gold Falls by ₹1,000, Silver Plunges ₹1,400
The prices of gold and silver witnessed a significant decline in the Indian market on Monday, with gold falling by ₹1,000 and silver plummeting by ₹1,400.
According to the All India Sarafa Association, gold prices declined to ₹98,400 per 10 grams in Delhi on Monday, marking a drop of ₹1,000 from the previous day’s closing price of ₹99,400 per 10 grams. This decline is a significant one, and it is likely to have a ripple effect on the overall gold market in India.
Silver prices also took a hit, plunging by ₹1,400 to settle at ₹98,500 per kg. This is a decline from the previous day’s closing price of ₹99,900 per kg. The fall in silver prices is also significant, and it is likely to have an impact on the demand for the white metal.
The decline in gold and silver prices is attributed to a combination of factors. One of the main reasons is the strengthening of the US dollar against other major currencies. A strong US dollar makes gold and other commodities more expensive for investors who hold other currencies, which can lead to a decline in demand and subsequently, a fall in prices.
Another factor that contributed to the decline in gold and silver prices is the increase in interest rates in the US. Higher interest rates make borrowing more expensive, which can reduce the demand for gold and other precious metals. Gold is often seen as a safe-haven asset, and investors may opt for other assets that offer higher returns in a high-interest-rate environment.
The decline in gold and silver prices is also attributed to the expectation of a rise in global economic growth. As the global economy recovers from the COVID-19 pandemic, investors may become more optimistic about the future and opt for assets that offer higher returns, such as stocks and bonds, rather than precious metals.
Despite the decline in gold and silver prices, the precious metals are still popular among investors. Gold, in particular, is often seen as a safe-haven asset, and its price tends to rise during times of economic uncertainty. Silver, on the other hand, is often used in industrial applications, and its price is influenced by global demand.
In conclusion, the decline in gold and silver prices is a significant development in the Indian market. While the prices may have fallen, the precious metals remain popular among investors, and their demand is likely to remain strong in the long term. It is essential for investors to stay informed about the latest developments in the gold and silver markets to make informed decisions about their investments.
Source: https://repository.inshorts.com/articles/en/PTI/308b3a2d-0079-4b78-8e4d-4a3c0dcc1871
