Editor’s Note
This article reports on a significant surge in precious metal prices in New Delhi, driven by global market trends and a weaker US dollar.
On Monday, the bullion market in the national capital witnessed a sharp surge of over six percent in silver prices. It reached 2.72 lakh rupees per kilogram. Gold prices also rose by nearly one percent to 1.58 lakh rupees per 10 grams. This rally was driven by strong global cues and a weakening US dollar.
According to local traders, silver jumped by 17,000 rupees from Friday’s closing price of 2,55,000 rupees per kilogram to 2,72,000 rupees per kilogram. Meanwhile, the price of 99.9% purity gold increased by 1,300 rupees to reach 1,58,500 rupees per 10 grams.
Saumil Gandhi, Senior Analyst (Commodity) at HDFC Securities, explained that gold gained on Monday due to a decline in the dollar and speculative buying. The dollar index had fallen by about 0.30 percent to around the 97 level, which supported gold and silver prices.
According to local traders, silver surged by 17,000 rupees or 6.66 percent to 2,72,000 rupees per kilogram (all taxes included). In the previous session on Friday, it had closed at 2,55,000 rupees per kilogram.
Additionally, 99.9% purity gold rose by 1,300 rupees or 0.83 percent to 1,58,500 rupees per 10 grams (all taxes included). In the previous session, it had closed at 1,57,200 rupees per 10 grams.
In the international market, silver also rose by 2.81 percent to bid at $80.21 per ounce. Gold was trading up one percent at $5,012.94 per ounce. According to Gandhi, investor sentiment was further boosted by data from China. The People’s Bank of China continued its gold purchases for the 15th consecutive month in January, despite high prices.
Market focus is now on upcoming US data. Traders are awaiting the US monthly employment data (Nonfarm Payrolls and Unemployment Rate) to be released on Wednesday. Additionally, the US inflation data to be released next Friday will also be closely watched. These two data points will determine the direction of the dollar and are likely to provide new cues for precious metals.
