The bullion market in the national capital witnessed a significant recovery on Thursday as gold and silver prices staged a powerful comeback, while after two consecutive days of decline, gold prices saw a substantial increase of 3000 rupees per 10 grams. This surge brought the price of 99 point 9 percent purity gold to 147500 rupees per 10 grams, inclusive of all taxes. This is a sharp rise from the previous day, Wednesday, when the precious metal was trading at 144500 rupees per 10 grams.
Silver Hits New Milestone
Silver also maintained its upward momentum for the third consecutive trading session. On Thursday, silver prices increased by 5000 rupees per kilogram, reaching a new milestone of 240000 rupees per kilogram, including all taxes. In the previous trading session, silver was priced at 235000 rupees per kilogram. Market traders attribute this consistent rise to strong industrial and investment demand, which continues to provide strong support to silver prices.
Support from International Markets
According to market experts, the direct impact of rising gold and silver prices in foreign markets was clearly visible in the domestic market. The weakening of the US dollar has made gold more attractive, leading to increased demand and strengthening its prices. Also, investors have ramped up their gold purchases as a safe-haven investment option amidst global uncertainties.
Expert Analysis and Fed Stance
Saumil Gandhi, Senior Commodities Analyst at HDFC Securities, noted that the market sentiment turned positive following signals from the US Federal Reserve. The Fed indicated a less hawkish stance on interest rates than previously expected, while this development reduced fears of an immediate interest rate hike, thereby providing much-needed support to gold prices.
Global Market Trends
In the international market, spot gold prices rose by 38 dollars and 75 cents, which is approximately a 1 percent increase, reaching 4070 dollars and 4 cents per ounce. Similarly, spot silver was seen trading at 59 dollars and 89 cents per ounce, marking a 1 point 3 percent rise. Market specialists believe that if the dollar remains weak and global economic uncertainty persists, the trend of rising prices with some volatility may continue in the coming days. Investors are now closely monitoring global economic indicators and the policies of central banks to determine the future trajectory of precious metals.