Gold and silver prices (Gold Silver Price Today) rose in the domestic bullion market on Wednesday. However, the futures market saw a decline. This is a mixed signal for investors, as precious metals remain under pressure in the international market as well.
Rise in the Domestic Bullion Market
According to market sources:
- Silver rose by Rs 2,700 to Rs 2.33 lakh per kilogram.
- Gold rose by Rs 960 to Rs 1.53 lakh per 10 grams.
- According to local jewelers, the spot market saw a rise due to improved demand and limited supply.
Decline on MCX
- Meanwhile, pressure was seen in futures trading on the Multi Commodity Exchange of India (MCX).
- Silver prices fell by Rs 8,000 to Rs 2.59 lakh per kilogram.
- Gold fell by Rs 3,111 to Rs 1.51 lakh per 10 grams.
Experts believe the decline was due to profit-booking in the futures market.
Third consecutive decline in the international market
- Gold and silver remained weak for the third consecutive session in the global market.
- Spot gold was seen trading at around $4,901 per ounce.
- Spot silver fell more than 1% to $72.30 per ounce.
- Trading volume in Asian markets remained low due to the Lunar New Year holiday, which kept prices under pressure.
How far below record highs?
Gold is trading about 15% below its all-time high of $5,626.80 per ounce. Silver is about 67% below its record high of $121.78 per ounce.
Strength of the dollar continues to exert pressure
According to analysts, the strengthening of the US dollar is putting pressure on precious metals. The dollar index rose 0.40% to 97.28, making dollar-denominated commodities more expensive for investors in other currencies and reducing demand.
Asian Markets Closed, Liquidity Reduced
Markets in China, Hong Kong, Singapore, Taiwan, and South Korea were closed due to the Lunar New Year. This reduced liquidity in the global market and increased volatility in precious metals.
Investors Eye the Federal Reserve
Investors are now watching the minutes of the Federal Reserve’s January meeting. These minutes may provide clues to future interest rate policy, which could directly impact gold and silver prices.
Geopolitical tensions also a factor
Proposed nuclear talks between the United States and Iran and increased military activity in West Asia have made investors cautious. However, there are no signs of a major agreement so far.
