Gold Prices Rise in India, Silver Prices Plunge
Gold prices in India saw an increase of Rs 100 to reach Rs 75,650 per 10 grams on Monday, driven by heightened buying activity from jewellers and a strong trend in global markets. On the other hand, silver prices took a hit, plummeting by Rs 600 to Rs 91,000 per kg. This dip in silver prices can be attributed to a decline of Rs 3,400 per kg in the past four sessions, starting from July 18 when it fell by Rs 400 to close at Rs 94,000 per kg.
Factors Influencing Gold Prices
The rise in gold prices was primarily influenced by fresh demand from local jewellers and a positive trend in international markets. This uptick in prices was also reflected in gold of 99.5 per cent purity, increasing by Rs 100 to Rs 75,300 per 10 grams. The increase in gold prices can be seen as a response to the uncertainty surrounding the US elections, as President Joe Biden’s decision to end his re-election campaign and endorse Vice President Kamala Harris creates a level of speculation among traders.
Insight into Global Trend
Globally, Comex gold is currently trading higher at USD 2,451.70 per ounce, up by USD 4.90 per ounce compared to the previous close. The rise in Comex gold can be attributed to the cautious stance of US dollar bulls in light of the recent political developments in the US. However, silver prices were marginally down at USD 29.25 per ounce in New York, as traders remain concerned about slowing Chinese economic growth and geopolitical risks.
Anticipation of Key Economic Indicators
Traders are eagerly awaiting the release of key economic indicators ahead of the Federal Open Market Committee (FOMC) policy decision next week. The upcoming release of the US Personal Consumption Expenditures (PCE) price index data on Friday is expected to provide more clarity on the US Federal Reserve’s monetary policy path, which will likely impact the direction of bullion prices in the near future. Overall, the global economic landscape and geopolitical tensions continue to influence the precious metals market.
