Gold prices in Delhi rebounded by ₹1,400 to ₹1.46 lakh per 10 grams on Monday, supported by firm international trends after recent sell-offs. Conversely, silver prices fell by ₹1,000 to ₹2.21 lakh per kilogram, marking a six-day losing streak as market sentiment remains cautious amid geopolitical uncertainty and interest rate expectations.
Precious metal markets witnessed a divergent trend in the national capital on Monday. Gold prices recorded a notable recovery, gaining ₹1,400 to reach ₹1,46,900 per 10 grams for 99.9 percent purity, according to the All India Sarafa Association. This increase follows a period of heavy selling pressure observed last week, prompting bargain hunters to return to the market.
Silver Continues Downward Trend
While gold found support, silver continued its struggle, dropping by ₹1,000 to close at ₹2,21,500 per kilogram. This decline reflects a persistent trend, as the white metal has now faced losses for six straight sessions. Data indicates that silver prices have cumulatively fallen by ₹15,500, or approximately 6.5 percent, since July 10. The contrast between the two metals highlights a shift in investor preference, as gold is often sought during times of heightened geopolitical risk, whereas silver's industrial demand component can lead to different volatility patterns.
Impact of Global Factors and US Policy
Domestic price movements were largely influenced by international market trends. Spot gold prices saw a positive move, trading near $4,020 per ounce. Investors are carefully weighing global geopolitical tensions—specifically reports regarding US and Iranian military developments—against the monetary policy outlook in the United States. While geopolitical instability often supports gold, expectations that the US Federal Reserve may keep interest rates elevated serve as a counteracting force, potentially limiting how high gold prices can climb.
Energy Market Volatility and Metal Demand
The broader commodities market has also been affected by oil price volatility. Brent crude recently moved above $91 per barrel before retracing as diplomatic efforts to manage tensions in the Gulf region gained attention. Movements in crude oil prices often influence inflationary expectations, which indirectly impact precious metal valuations.
Looking ahead, market analysts suggest that gold is likely to remain range-bound. For investors, the key monitorable will be the Federal Reserve’s upcoming interest rate stance and any further escalation or cooling of tensions in the Middle East, as these factors will continue to dictate the attractiveness of non-yielding assets like gold and silver in the coming weeks.