Gold and Silver Prices Fluctuate Amidst Monsoon and Market Changes
Amidst the ongoing monsoon, gold prices have surged by Rs 350 per 10 grams, reaching Rs 72,850. Conversely, silver prices have dropped by Rs 200 per kilogram to Rs 86,000. This fluctuation is attributed to changes in customs duty and market dynamics.
The ongoing monsoon season has had a significant impact on the precious metals market, resulting in notable fluctuations in gold and silver prices. As the rain has washed over gold, it has dramatically increased in value, with a rise of ?350 per 10 grams. In contrast, silver has experienced a decline of approximately Rs 200 per kilogram due to market conditions.
Gold Prices Surge
According to information from the All India Bullion Market, gold prices in the Delhi bullion market reached INR 72,850 per 10 grams on Friday, marking a consistent increase for the fourth consecutive day. The price for gold with 99.5 percent purity also rose by Rs 350, reaching INR 72,500 per 10 grams, up from INR 72,150 per 10 grams on Thursday. The surge in gold prices is attributed to several factors, including a reduction in customs duty by the government, which has boosted demand among jewelers.
Silver Prices Decline
Conversely, the price of silver fell to INR 86,000 per kilogram, down from INR 86,200 per kilogram on Thursday. This decline is reflective of a broader trend observed in the precious metals market, influenced by ongoing rainfall and shifting market sentiments.
Impact of Customs Duty Reduction
Market analysts suggest that the government’s decision to cut customs duties has played a crucial role in the increased demand for gold. This adjustment has led to a rise in gold prices as jewelers seek to capitalize on the reduced costs. Additionally, weaker U.S. economic data and rising tensions in West Asia have contributed to the heightened interest in gold as a safe-haven investment. Investors are seeking secure investment options amidst expectations of a potential rate cut by the U.S. Federal Reserve.
Futures Market Trends
In the futures market, gold prices saw an increase of Rs 641, reaching INR 70,595 per 10 grams, driven by strong spot demand and speculative trading. On the Multi Commodity Exchange (MCX), the August delivery contract for gold was up by 0.92 percent. Internationally, gold prices in New York climbed by 1.12 percent, reaching $2,508.60 per ounce.
Silver Futures Shine
Silver also showed a positive trend in the futures market, with prices rising by INR 1,232 to INR 83,826 per kilogram. This increase is attributed to strong spot demand and larger trade volumes. On the MCX, the September delivery contract for silver rose by 1.49 percent. In international markets, silver prices in New York increased by 1.87 percent to $29.01 per ounce.
The fluctuations in gold and silver prices reflect the dynamic nature of the commodity markets, influenced by both domestic and international factors. Investors and traders are advised to stay informed about market trends and economic indicators to make informed decisions in this volatile environment.
