A sharp fall in the prices of gold and silver was seen in the national capital on Thursday. Due to increasing uncertainty over the ceasefire in West Asia and profit-booking by investors, silver fell by Rs 7,800 to Rs 2.43 lakh per kg, while gold slipped to Rs 1.54 lakh per 10 grams. According to All India Bullion Association, silver fell by 3.10% i.e. Rs 7,800 and closed at Rs 2,43,200 per kg (including all taxes), according to PTI news. Earlier it was at Rs 2,51,000 per kg. At the same time, gold of 99.9% purity also fell by Rs 1,500 to Rs 1,54,900 per 10 grams, which had closed at Rs 1,56,400 per 10 grams in the previous session.
analysts opinion
According to the news, analysts say that the uncertainty regarding the ceasefire between America and Iran has weakened the market sentiment, due to which there has been increased selling pressure in precious metals. According to Saumil Gandhi, Commodity Senior Analyst at HDFC Securities, gold prices have declined and the rally of the previous session has almost ended as investors re-assess the situation in West Asia. He said sporadic clashes, uncertainty over the reopening of the Strait of Hormuz, impact on tanker movement and reports of ceasefire violations put pressure on investor sentiment. He also said doubts over the sustainability of the two-week ceasefire had reignited concerns about energy prices and inflation.
How was the trend in global markets?
However, a different trend was seen in the global market. Spot gold was up $21.28 (0.45%) at $4,740.63 an ounce, while silver was trading marginally higher at $74.12 an ounce. According to Praveen Singh, Commodity Head, Mirae Asset Sharekhan, gold is showing strength for the fourth consecutive day due to weakness in the dollar. However, the US-Iran ceasefire still appears weak due to the ongoing tension in Lebanon and uncertainty over the Strait of Hormuz. He said Iran has suggested alternative routes given the potential threat to key shipping routes, while crude oil prices are trying to remain stable, limiting the recovery in commodities and risk assets.
According to analysts, gold is currently trading around $ 4,730 an ounce and may see limited range fluctuations before the US CPI data for March. Also, the price of gold is expected to reach $5,000 per ounce in the near future.
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