Gold and Silver prices dip in National Capital following global trends

Gold metal had ended at Rs 72,150 per 10 grams in the last session.

Gold Prices Decline

Gold prices in the national capital fell by Rs 70 to Rs 72,080 per 10 grams on Friday, influenced by global market trends, according to HDFC Securities. The previous session had seen gold priced at Rs 72,150 per 10 grams.

Silver Prices Follow Suit

Similarly, silver prices also saw a decline, dropping by Rs 250 to Rs 90,700 per kg. The metal had closed at Rs 90,950 per kg on Thursday.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, reported, “In Delhi markets, spot gold prices (24 carats) are trading at Rs 72,080 per 10 grams, down by Rs 70 from the previous close.”

International Market Influence

In the international markets, spot gold on Comex was trading at USD 2,310 per ounce, a decrease of USD 3 from the previous close.

The decline in gold prices on Friday was attributed to a rise in the US dollar and a hawkish stance from the US Federal Reserve this week.

Impact of US Federal Reserve Policies

Experts indicate that prices are under pressure due to the aggressive approach of the US Federal Reserve towards interest rates.

Although the US Central Bank maintained the status quo on interest rates, its latest commentary suggests a cautious outlook on rate cuts in 2024.

The Fed’s revised stance, reducing the expected rate cuts from three to just one this year, has bolstered the US dollar and US Treasury yields, thereby negatively impacting gold prices.

Silver Prices in International Markets

Silver prices also quoted lower in the international markets, trading at USD 29.05 per ounce compared to the previous session’s close of USD 29.30 per ounce.

Retail Gold Demand Outlook

Despite the current pressures on prices, experts suggest that retail gold demand from Asian countries is expected to remain robust this year amid ongoing geopolitical uncertainties.

Conclusion

The fluctuations in the metal prices in the national capital and international markets highlight the significant impact of global economic policies and market trends on precious metals.

As the US Federal Reserve’s stance continues to influence the strength of the US dollar and Treasury yields, the commodity markets are likely to experience ongoing volatility.