Gold Prices Hit Fresh All-Time High, Silver Plunges by ₹1,400
The prices of gold have touched a fresh all-time high, while silver prices have taken a plunge in the national capital. According to the All India Sarafa Association, gold prices jumped by ₹70 to hit a fresh all-time high of ₹98,170 per 10 grams in Delhi on Thursday.
The latest development marks a significant increase from the previous day’s closing level of ₹98,100 per 10 grams for gold of 99.9% purity. This upward trend is likely to be driven by a combination of factors, including the ongoing global economic uncertainty and the Reserve Bank of India’s (RBI) decision to keep interest rates unchanged.
On the other hand, silver prices took a sharp plunge, dropping by ₹1,400 to hit ₹98,000 per kg from Wednesday’s closing level of ₹99,400 per kg. This decline is likely to be attributed to a decrease in demand and a rally in the rupee against the US dollar.
The All India Sarafa Association is a trade association that represents the interests of gold and silver traders across the country. Its data is widely followed by market participants and investors to gauge the direction of gold and silver prices.
The rally in gold prices is likely to be driven by a combination of factors, including:
- Global Economic Uncertainty: The ongoing global economic uncertainty has led to increased demand for gold as a safe-haven asset. As investors seek to diversify their portfolios and reduce their exposure to volatile markets, gold has emerged as a popular choice.
- RBI’s Monetary Policy Decision: The RBI’s decision to keep interest rates unchanged has led to a decrease in the value of the rupee against the US dollar. This has made gold more attractive to investors, as the price of the precious metal has risen in response to the weakening rupee.
- Increased Demand from Jewellers: The upcoming wedding season in India has led to increased demand from jewellers, who are looking to stock up on gold and silver to meet the growing demand from customers.
Despite the decline in silver prices, many analysts remain bullish on the metal’s prospects in the long term. Silver is often seen as a proxy for industrial demand, and its prices are closely tied to the performance of the global economy.
In recent months, silver prices have been under pressure due to a decline in industrial demand and a surge in supply from major producers. However, many analysts believe that silver’s prices are likely to recover in the long term, driven by increasing demand from industries such as solar panels, electronics, and medicine.
In conclusion, the latest developments in the gold and silver markets are likely to have significant implications for investors and traders. While gold prices have hit a fresh all-time high, silver prices have taken a plunge. Investors would do well to keep a close eye on these developments and adjust their portfolios accordingly.
Source: https://repository.inshorts.com/articles/en/PTI/3cc4154d-26a7-450a-b4cf-c8c6b56c53be
