There was a strong rise in the prices of gold and silver in Delhi bullion market on Wednesday. Gold hit a two-week high, while silver surprised investors and buyers by jumping by a huge ₹8,500 in just a day. Market experts say that this rise in precious metals was due to strong signals from the international market, increase in domestic demand and increasing interest from investors.
In Delhi bullion market, the price of 10 grams of gold increased by Rs 1,900 to Rs 1,49,600. This is the highest level in the last two weeks. Gold prices have registered a rise for the third consecutive trading session. After the fall in prices in recent times, purchasing in the market has increased, due to which gold has strengthened.
Silver increased by ₹ 8,500 in a day
Along with gold, there was a sharp rise in the prices of silver also. Silver became costlier by Rs 8,500 and reached Rs 2,30,000 per kg. This is the sixth consecutive trading session of rise in silver. Strong industrial demand and increased buying by investors took its prices to new highs.
Physical demand and ETF investment provided support
The physical demand for gold has improved. Apart from this, investment in Gold Exchange Traded Fund (ETF) has also increased. This indicates that investor confidence is once again returning towards gold and it is being seen as a safe investment.
Received support from international market
Gold and silver remained strong in the global market also. Spot gold recorded a rise of more than one per cent, while silver prices also saw a rise of almost one per cent. Due to ongoing tensions in West Asia and global economic uncertainty, investors are turning to safer investment options.
What could be the impact going forward?
If crude oil prices remain at high levels, inflation may increase. In such a situation, the Central Bank of America may take a strict stance regarding interest rates. A rise in interest rates usually puts pressure on gold prices.
Also read- Gold and silver worth Rs 64 crore is gathering dust in the coffers of Rajasthan government, revealed in CAG report.
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