Gold rate today: Gold fell by Rs 300, silver fell by Rs 1100, what is the reason and future trend

Gold Price Today: In Delhi’s bullion market, 10 grams of gold became cheaper by Rs 300 and came to Rs 98,600, while the price of silver fell by Rs 1,100.

 

There was a sharp fall in the prices of gold and silver on Wednesday. In Delhi’s bullion market, 10 grams of gold became cheaper by Rs 300 and came to Rs 98,600, while the price of silver fell by Rs 1,100. This is the fifth consecutive day when the price of gold has fallen. According to market experts, the biggest reason behind this is the weak trend in the international markets and the selling by investors.

Gold fell for the fifth consecutive day

While gold of 99.9% purity closed at Rs 98,900 per 10 grams in Delhi market on Tuesday, it fell to Rs 98,600 on Wednesday. At the same time, gold of 99.5% purity came down to Rs 98,050 including all taxes, which is Rs 250 less than the previous session.

Saumil Gandhi, Senior Analyst (Commodity) of HDFC Securities, says, “There was a slight bearish trend in the market. After the announcement of ceasefire between Iran and Israel, geo-political tension has reduced, due to which the safe haven demand for gold decreased and prices reached a two-week low.”

Big fall in the price of silver

A huge fall was also seen in the price of silver. On Wednesday, it fell by Rs 1,100 to Rs 1,03,100 per kg. On Tuesday, silver closed at Rs 1,04,200 per kg. This fall has also come due to global signals, where investors have made huge profit booking.

Weakness in international markets too

Gold remained slightly weak in global markets too. Spot gold price fell to $3,322.56 an ounce. Uncertainty over US economic data and doubts over Federal Reserve policy are considered to be a major reason behind this fall in gold.

Jatin Trivedi, Vice President (Commodity and Currency), LKP Securities, said, “The price of gold on MCX remained around Rs 97,220 as the price of gold remained stable between $ 3,320 and $ 3,335 in Comex. After sharp profit booking in the last two sessions, investors are now waiting for the next important information like the testimony of US Fed Chair Jerome Powell and GDP data.” He further said, “These figures will determine what will be the Fed’s strategy regarding interest rates. Due to this uncertainty, there may be fluctuations in the prices of gold in the near future. At present, the trading range of gold can remain between Rs 96,000 and Rs 98,500.”

 

What can happen next?

Abans Financial Services CEO Chintan Mehta says, “The market will now keep an eye on US economic data as well as global trade tensions and geo-political risks. If the tension increases, the demand for safe haven assets like gold may increase, which may lead to a rise in prices again.”

He further said, “The current situation can bring fluctuations in many commodities, especially when crude oil prices are also going up. Any major geo-political event can bring huge turmoil in the market.”

Advice for investors

At present, both gold and silver are under pressure due to weak global signals and falling demand. Investors should keep an eye on the situation at the moment and should not make any big investment in a hurry. In the next few days, the direction of gold and silver will be decided based on the policy of the US Federal Reserve and international events. If you are planning to invest in gold or silver, then it is important to be cautious at this time. When the market will regain its strength will depend on the Fed’s policy, dollar movement and geo-political conditions.

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