There was a huge rise in the prices of precious metals across India including the national capital Delhi on Wednesday. This is the second consecutive day that gold and silver have seen a strong recovery, which comes after last week’s heavy selling and correction. According to All India Bullion Association, silver rose by Rs 14,300, or 5.03%, to Rs 2,98,300 per kg (including all taxes), according to All India Bullion Association. In the last session it had closed at Rs 2,84,000 per kg. On the other hand, 99.9% pure gold rose by Rs 7,400 or 4.69%, taking the price to cross the level of Rs 1,65,100 per 10 grams (including all taxes). Tuesday’s closing price was Rs 1,57,700 per 10 grams.
What do experts say
According to traders and analysts, this rise is mainly driven by strong trends in global markets and weakness of the US dollar. Investors’ interest in safe investment metals has increased again. Lemon Markets Research Analyst Gaurav Garg said that after a period of sharp fluctuations and correction, both gold and silver saw a strong recovery on Wednesday. Gold rose more than 3% to around Rs 1.6 lakh per 10 grams, while silver jumped nearly 6% intra-day.
Strength in international market also
- Spot silver rose $4.28, or 5.03%, to $89.35 an ounce.
- Spot gold is trading at $5,047.07 an ounce, up $100.03 or 2.02%.
Impact of increasing geopolitical tension between America and Iran
HDFC Securities Senior Analyst (Commodities) Saumil Gandhi, explaining the reason for this rise, said that the increasing geopolitical tensions between America and Iran are again pushing investors towards safe assets. He said the US-Iran confrontation is weakening hopes for nuclear talks to be held this week. This is raising fears of escalating conflict between Washington and Tehran, which could increase the risk premium in gold and further strengthen demand for safe-haven assets.
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