This week, buyers of gold benefited from the significant drop in gold and silver prices. However, on the last day of the week, Friday, prices for precious metals in the Delhi jewelry market remained unchanged. The price of gold stayed at 1,49,900 rupees per 10 grams, and silver at 2.15 lakh rupees per kilogram.
On the international market, prices for both gold and silver saw an increase. Gold traded at $4,176 per ounce, showing a rise of 0.13%, while silver rose by 0.30% to $57.58 per ounce.
In the Delhi jewelry market, gold decreased by 3%, which amounts to 4500 rupees per 10 grams. A more substantial decline was recorded for silver: over the week, it fell by 13,500 rupees, or 6%. This decrease is considered a positive development during the festive season, as there is a tradition in India of buying gold before Diwali.
Experts note that although geopolitical tensions contributed to strengthening gold and silver prices, the continuous rise of the dollar and accelerating bond yields have created a new inflation risk. As a result, there is a decline in gold and silver prices.
Furthermore, the import of gold and silver into India has decreased. Following an increase in the import bill, the demand for gold from abroad in India has shrunk by 81%, and the demand for silver by approximately 50%. Investors are also cautious due to concerns about another interest rate cut by the Federal Reserve and are currently refraining from investing in gold and silver.