Bullion Association Reports Fall in Gold and Silver Prices
Bullion Prices Decline Amid Weak Global Demand and Stronger Dollar
Gold and silver prices registered a notable decline in the domestic bullion market as global demand for precious metals weakened and the US dollar strengthened in forex markets. The uncertainty surrounding possible interest rate cuts also contributed to the downward trend.
According to the All India Sarafa Association, prices of both metals dropped significantly in the New Delhi bullion market on Friday. The decline follows changes in global market dynamics and currency movements.
Silver Prices See Sharp Fall
Silver prices recorded a steep drop in the national capital. The price of silver fell by Rs. 11,000 per kilogram, a decline of 3.97 percent compared to the previous day.
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With the fall, the price of silver came down to Rs. 2,65,500 per kilogram on Friday from Rs. 2,76,500 recorded on Thursday. Market analysts said weakening demand for precious metals in international markets was a major factor behind the decline.
Gold Prices Also Slip
Gold prices also moved lower alongside silver. The price of 10 grams of gold with 99.9 percent purity declined by Rs.2,000 or 1.21 percent.
Following the drop, the price stood at Rs.1,63,200 compared to Rs.1,65,200 recorded earlier. The fall in prices reflects broader pressure on precious metals across international markets.
Hyderabad Market Shows Similar Trend
The decline was also visible in regional markets, including Hyderabad. In the Hyderabad bullion market, the price of 24-carat gold fell by Rs.1,530 for 10 grams to Rs.1,60,690.
Similarly, the price of 22-carat gold dropped by Rs.1,400 and settled at Rs.1,47,300 for 10 grams.
Global Factors Behind Price Movement
Market experts attribute the fall primarily to the strengthening of the US dollar in forex markets and reduced expectations of a key interest rate cut in the upcoming monetary policy review by the Reserve Bank.
Dilip Parmar, Senior Research Analyst at HDFC Securities, said the stronger dollar and uncertainty over interest rate reductions have weakened precious metal prices.
Additional global factors also contributed to the trend. Rising crude oil prices and increasing geopolitical tensions in West Asia have affected market sentiment.
In the international market, silver prices slipped by about one percent to 83.14 dollars per ounce. Gold, however, registered a slight increase and was quoted at 5,088 dollars per ounce.
Market Context
Precious metal prices often react to movements in global currencies, interest rate expectations, and geopolitical developments. Analysts say fluctuations in these factors continue to influence bullion prices in domestic markets.
