Precious Metals Surge in New Delhi Amid Global Trends
In a remarkable rally, precious metals continued their upward trajectory in New Delhi, with silver prices reaching an impressive Rs 2.98 lakh per kg and gold climbing to Rs 1.65 lakh per 10 grams for the second consecutive day.
Traders attributed this surge to firm global trends and a weakening US dollar, which reignited investor interest in precious metals following a significant sell-off last week.
According to the All India Sarafa Association, silver witnessed a remarkable surge of Rs 14,300, or 5.03%, reaching Rs 2,98,300 per kilogram inclusive of all taxes, marking a significant increase from the previous session’s closing price of Rs 2,84,000 per kg.
Gold of 99.9% purity also experienced substantial growth, with a gain of Rs 7,400, or 4.69%, bringing it to Rs 1,65,100 per 10 grams inclusive of all taxes, compared to the previous day’s closing price of Rs 1,57,700 per 10 grams.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlighted the continued rebound of gold and silver prices on Wednesday, with gold prices surging over 3% to around Rs 1.6 lakh per 10 grams and silver jumping as much as 6% intra-day after a period of volatility and correction.
In the international market, spot silver saw an increase of USD 4.28, or 5.03%, reaching USD 89.35 per ounce, while gold rose by USD 100.03, or 2.02%, reaching USD 5,047.07 per ounce.
Commenting on the surge, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, noted that gold and silver prices were being driven by renewed safe-haven buying amidst escalating geopolitical tensions between the US and Iran.
This confrontation has dampened optimism over the US-Iran nuclear talks scheduled for later this week and raised concerns about potential conflict between Washington and Tehran, leading to an increase in the risk premium on gold and heightened demand for safe-haven assets.
