Gold Prices Drop by ₹190, Silver Gains ₹350 Amid Market Volatility
Gold prices fell by ₹190 to ₹78,960 per 10 grams in the Indian markets on Monday, reflecting shifts in global and domestic demand. However, silver prices climbed ₹350, reaching ₹98,900 per kilogram, signaling mixed trends in precious metal markets.
This movement in prices came amid varying international spot market trends. Gold traded lower internationally at $2,020 per ounce, while silver registered a slight rise, trading at $24.50 per ounce.
Mixed Sentiments Drive Precious Metal Markets
According to industry analysts, the fluctuation in precious metal prices is a result of mixed global market sentiments influenced by multiple factors, including economic data releases and geopolitical developments.
“Gold prices are under pressure due to strength in the US dollar index and higher bond yields, which tend to negatively impact the appeal of non-interest-bearing assets like gold,” analysts noted.
Conversely, silver gained traction, supported by increased industrial demand and speculative buying.
Domestic Market Factors
In the national capital, gold of 24-carat purity saw a dip, reflecting lower demand in the local market amid higher international rates. Jewellers have noted that wedding season purchases have been steady but not sufficient to offset global trends.
Silver prices rose on the back of strong industrial demand, especially from the electronics and renewable energy sectors, where silver is a critical component.
Outlook
Market experts suggest that gold and silver prices are likely to remain volatile in the near term, driven by shifts in monetary policies of major central banks, inflationary pressures, and geopolitical tensions. Investors are advised to monitor global economic indicators and central bank actions to gauge future movements in precious metal prices.
The price trends in gold and silver underline their differing market dynamics, with gold serving as a safe-haven asset while silver benefits from its dual role as a precious and industrial metal.
