The Indian bullion market witnessed a mixed trend today, with gold prices continuing their upward trajectory for the second consecutive day, while silver experienced a downturn, losing its luster for the second day in a row. This divergence in performance is largely attributed to the prevailing uncertainty in. The market regarding the US Federal Reserve's potential announcement on interest rate cuts. Investors are keenly awaiting this crucial decision, which is expected to Importantly influence the movement of these precious metals.
Gold's Consistent Ascent
In the capital city of Delhi, gold prices recorded another day of gains, while 24-carat gold increased by ₹10 per ten grams, and 22-carat gold also saw a rise of ₹10 per ten grams. Over the past two days, 24-carat gold prices have surged by ₹330 per ten grams, while 22-carat gold has climbed by ₹310 per ten grams. This two-day strengthening underscores growing investor confidence in gold as a safe-haven asset amidst geopolitical tensions and economic uncertainties. The demand for gold typically rises during periods of market volatility, as investors seek to protect their wealth.
Silver's Continued Decline
In stark contrast to gold, silver faced another challenging day. In Delhi, one kilogram of silver became cheaper for the second consecutive day. Following a day of stability, silver prices have plummeted by ₹2100 per kilogram over the last two days. As of November 18th, silver is trading at ₹1,66,900 per kilogram in Delhi, reflecting a ₹100 per kilogram drop today. Previously, silver had experienced significant fluctuations; it fell by ₹4100 per kilogram before a day of stability, and prior to that, it had surged by ₹20600 per kilogram over five consecutive days. This volatility suggests that silver prices are more susceptible to. Market shifts and react more sharply to economic indicators than gold.
City-wise Gold Prices Across India
Gold prices varied slightly across India's ten major cities. In Delhi, 22-carat gold was priced at ₹1,15,110 per 10 grams, and 24-carat gold at ₹1,25,560 per 10 grams. Mumbai and Kolkata saw 22-carat gold at ₹1,14,960 and 24-carat gold at ₹1,25,410 per 10 grams. Chennai recorded the highest prices, with 22-carat gold at ₹1,15,390 and 24-carat gold at ₹1,25,880 per 10 grams. Bengaluru's rates mirrored those of Mumbai and Kolkata. Hyderabad's 22-carat gold was ₹1,14,960 per 10 grams, while the 24-carat price was also listed as. ₹1,14,960 per 10 grams, which appears to be an anomaly as 24-carat typically commands a higher price. Lucknow and Jaipur reported prices similar to Delhi, while Patna and Ahmedabad had 22-carat and 24-carat gold at ₹1,135,010 and ₹1,25,460, and ₹1,15,010 and ₹1,25,460 respectively. These city-to-city variations are influenced by local demand, supply dynamics, and taxation.
Silver Rates in Major Metros
Differences in silver prices were also observed among the major metropolitan cities. In Delhi, silver was trading at ₹1,66,900 per kilogram on November 18th, while mumbai and Kolkata offered silver at the same price as Delhi. However, Chennai stood out with silver prices at ₹1,72,900 per kilogram, making it the most expensive among the four major metros. This disparity reflects local market dynamics and transportation costs. Silver prices are influenced by both industrial demand and investment demand,. And the recent decline could be a reflection of broader economic concerns.
Expert Outlook and Future Trends
Rahul Kalantri, Vice President (Commodities) at Mehta Equities, provided insights into the future trajectory of gold. He stated that despite short-term fluctuations, gold remains on track for its strongest annual performance in decades. This strength is underpinned by continuous central bank purchases and solid safe-haven demand amid fiscal and geopolitical uncertainties. Kalantri anticipates that both gold and silver will continue to experience volatility until the US Fed's policy announcement on interest rates. This indicates that the market is holding its breath for the Fed's decision, which will likely dictate the next significant move for these precious metals.
Kunal Shah, Vice President at Nirmal Bang Securities, advised investors to exercise caution regarding gold. He noted that gold is currently behaving like a risk class. When any asset class is poised to establish a new level, either upwards or downwards, a period of consolidation typically occurs. Gold is currently in such a phase. So, Shah recommended that investors shouldn't be aggressive with their gold investments and should approach the market with prudence. This advice underscores the current market instability and the critical importance of the upcoming Fed decision. Investors are encouraged to closely monitor market trends and make informed decisions.
