Gold Prices Rise in Delhi Bullion Market Despite International Weakness

Despite a decline in gold prices in the international market, prices have risen again in Delhi’s bullion market. The All India Sarafa Association has reported an increase in gold and silver prices due to renewed buying by jewelers at the domestic level. On Monday, gold closed at INR 75,150 per 10 grams, gaining INR 50 in the bullion market of Delhi. Previously, gold had closed at INR 75,100 per 10 grams on Saturday. However, the price of silver fell by INR 500 to INR 94,000 per kg, down from INR 94,500 per kg in the previous session. In the international markets, spot gold fell by $3.51, trading at $2,407.92 per ounce.

Fluctuations in International Market Prices

Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, noted that gold prices witnessed significant fluctuations in the international market. Despite this, gold managed to stay above $2,400, a level reached last week following the release of the US Consumer Price Index (CPI) data. Silver also saw a decline, trading at $30.69 an ounce. Modi highlighted that updated information about the US presidential election could increase volatility in the bullion market, potentially exacerbating geopolitical tensions. Traders are expected to focus on the speech by US Federal Reserve Chief Jerome Powell on Monday.

Gold Futures Prices Decline

Amid weak spot demand, speculators reduced the size of their deals, leading to a fall in gold futures prices. On Monday, gold futures on the Multi Commodity Exchange (MCX) fell by INR 224 to INR 73,045 per 10 grams. The price of the contract for supply in August dropped by INR 224, or 0.31 percent, to INR 73,045 per 10 grams, with 12,021 lots traded. Globally, gold prices fell by 0.57 percent to $2,406.80 an ounce in New York. Market analysts attribute the decline in gold futures prices to a weak trend in global markets.

Silver Futures Prices Weaken

Similarly, silver prices fell by INR 653 to INR 92,456 per kg in futures trading on Monday as traders reduced the size of their deals amid weak spot demand. The price of the silver contract for delivery in September on MCX dropped by INR 653, or 0.51 percent, to INR 92,456 per kg, with 22,813 lots traded. Globally, silver prices in New York fell by 1.08 percent to $30.83 an ounce.

The fluctuations in the bullion market reflect the broader economic uncertainties and the impact of geopolitical events. As the market reacts to various factors, including the US presidential election and Federal Reserve policies, both gold and silver prices are expected to remain volatile.

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