With the coming of Holi and the festive season comes the falling prices of gold and silver, which could mean buying opportunities for investors. So, if you’ve been waiting for the right time to invest in these metals, now is the time to keep an eye on the market.
Let’s check out the latest news on gold rates, the factors contributing to the decline, and an impact on investors.
Gold and Silver Prices Hit Lower Levels
On Monday, gold prices fell for the third session in a row. In the bullion market of the national capital, gold prices dropped by Rs 150 on Monday, bringing the price down to Rs 88,750 per 10 gram. Likewise, silver prices fell by Rs 250, which brings the price per kilogram to Rs 99,250.
Comex gold futures for April delivery fell 0.32% to $2,904.80 an ounce. Spot gold also fell 0.13% to $2,905.31 an ounce. Silver futures for May delivery were trading lower at $32.80 an ounce.
Why the Falling Prices of Gold and Silver?
There are several reasons behind the recent fall in prices of gold and silver, including:
- Weakness in International Markets: Uncertain global economic conditions, coupled with varying demand for precious metals, really affected the prices.
- Surge in US Bond Yields: Higher bond yields usually render gold unattractive to investors, as they will tend to divert their investments into other assets that yield better returns.
- Dollar Performance: The US dollar has weakened, giving some marginal support for gold prices, but has not been enough to reverse the overall downtrend.
According to Rahul Kalantri, Vice President of Mehta Equities Ltd, the recent cooling off in gold and silver prices is attributable to the very high bond yield in the US. The US government’s decision to hold off from tariffs on Mexico is adding to the cautiousness in the market.
Current Average Prices of Gold and Silver
Here is a brief overall view of the average prices today:
- Gold: ₹87,800 per 10 grams
- Silver: ₹97,800 per kilogram
- Silver Coin: ₹1,100
What Should the Investors Expect?
Investors should prepare themselves to deal with further volatility, as there is no guarantee so far that prices will remain this way in the coming days. The continued rise and fall of bond yields in the US, the global economic picture, and currency movement will continue to play a significant role in affecting the market trends.
For those wanting to buy gold or buy silver just before Holi, such a fall may be an opportune time. But it is also vital to stay abreast with the market at this time and make the decision to buy accordingly.