Amidst the changing situation in the global market, there has been a tremendous rise in the prices of gold and silver. While silver has become costlier by around ₹13,000 per kg in the last one week, the price of gold has also increased by around ₹3,000-₹3,500. Increasing buying among investors and international developments have taken these precious metals to new highs.
On the Multi Commodity Exchange (MCX), gold closed at ₹ 1,52,690 per 10 grams, an increase of more than ₹ 3,000 compared to last week. Whereas silver reached ₹ 2,43,274 per kg, which saw a big jump of about ₹ 13,000. The same trend remained in the international market also. On COMEX, gold closed at $4,787 per troy ounce and silver at $76.48 per troy ounce.
Why did the prices of gold and silver increase?
According to experts, the expectation of stability in the market has increased due to the reduction in the war-like situation between America and Iran and the commencement of ceasefire talks. Due to this, crude oil prices fell and the US dollar weakened. Gold and silver directly benefit from the weakening of the dollar, because they become more attractive for investors.
Hope of Fed rate cut increases shine
After the fall in crude oil prices, concerns about inflation have reduced in America. This has increased the expectation that the US Federal Reserve may cut interest rates in the coming time. When interest rates are low, investments like gold and silver are considered more profitable, due to which their demand increases.
silver wins
This time the rise of silver was more than that of gold. Silver gave better returns to investors with a gain of about 4.8% in a week. Silver remains bullish due to both industrial demand and investment.
What will be the trend going forward?
Market experts believe that at present the prices of gold and silver may continue to rise, but it will largely depend on the situation between America and Iran and the decisions of the Fed. If geopolitical tensions increase again or the dollar weakens further, gold and silver prices may go up further.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
