The effect of global tension is visible in the prices of gold and silver. The price of silver fell by Rs 2410 to Rs 2.67 lakh per kg. At the same time, the price of gold fell by Rs 530 to Rs 1.62 lakh per 10 grams.
Gold and silver prices in global markets
There was a decline in the prices of gold and silver in the international market. A stronger US dollar and rising crude oil prices increased investor caution, putting pressure on precious metals. Spot gold fell 0.2% to $5,165.73 an ounce. At the same time, American gold futures for April delivery were also seen trading down by 0.2% at $ 5,171.40 an ounce. There was not much change in the price of silver and spot silver remained almost stable at $ 85.82 an ounce. Meanwhile, the US dollar strengthened by about 0.2%. Due to the strengthening of the dollar, dollar-denominated commodities like gold and silver become expensive for investors in other currencies, thereby impacting demand.
What do experts say?
According to Bloomberg report, Melbourne-based Vantage Markets analyst Hebe Chen believes that this decline in gold is not a sign of weakness but a temporary stagnation in the market. According to him, the fear of rising inflation has strengthened the dollar and this has put aside hopes of the US Federal Reserve reducing interest rates soon. For this reason, investors have stayed away from gold for some time, because the market usually gives priority to only one safe investment at a time.