Gold and Silver price today: Important news has come out for those who are planning to buy gold and silver. In the local bullion market, the prices of the precious metals have fallen sharply. Gold of 99.9 per cent purity fell by ₹ 3,300 to ₹ 1,62,400 per 10 grams at Delhi’s Sarafa Bazar on Friday. In the previous business session, gold was priced at ₹ 1,65,700 per 10 grams.
Gold lower for third day in a row
Gold prices have declined for the third consecutive business session. Gold price in Delhi on August 25 was ₹1,67,100 per 10 grams. In the three business sessions since then, it has fallen by a total of ₹ 4,700, or about 3 percent.
Gold has seen a strong rally recently, but prices have come under pressure as traders and investors start booking profits at higher levels.
Silver falls by ₹5,000 in a single day
Along with gold, the price of silver has also seen a big crash. Silver fell by ₹ 5,000 to ₹ 2,45,500 per kg in the Delhi market on Friday. In the previous session, silver price was ₹ 2,50,500 per kg. This price is inclusive of all taxes.
That is, the buyer of one kg of silver in a single business session has got a relief of ₹ 5,000 on account of price. However, the current price of silver is still at a high level and may see further fluctuations due to international market movements.
Why did the prices of gold and silver fall?
A strong US dollar is being considered as one of the main reasons behind the fall in precious metal prices. When the dollar strengthens, gold, which is generally traded in dollars in the international market, increases pressure.
Apart from this, the profit booking after the recent boom has also dragged down the gold prices in the domestic market. According to market experts, gold fell for the third day in a row due to strong dollar and high profit taking.
Fed Chairman’s statement put pressure on the global market
A big fall in gold was also recorded in the international market on Friday. American Federal Reserve Chairman Kevin Warsh expressed concern about inflation, and speculations about the possibility of raising interest rates again in the market intensified.
After Warsh’s statement, market expectations about the possibility of a US interest rate hike in September increased. High interest rates are generally considered negative for gold, as gold itself does not pay any interest. At the same time, the strength in the dollar also increased the pressure on international gold prices.
How much gold price drop in three days?
On August 25, gold of 99.9 per cent purity was priced at ₹1,67,100 per 10 grams. On August 28, it fell to ₹1,62,400 per 10 grams. Hence, gold has fallen by ₹4,700 per 10 grams in three business sessions, a decline of around 3 percent.
Amidst these major price fluctuations in the bullion market, movement of the US dollar, interest rate policy of the Federal Reserve, global geopolitical situation and domestic demand will be important factors for gold and silver prices in the coming days.
