Gold & Silver Dip! Profit Booking or New Rally Starting? See Today's Prices!

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

Gold and silver prices experienced a temporary pause on Friday, following a significant rally in previous sessions, as traders engaged in profit-booking. As of 11:30 am, gold prices saw a slight increase of 0.3% (Rs 420) to reach Rs 1,26,331 per 10 grams, while silver prices slipped by 0.8% (Rs 1,308) to Rs 1,61,162 per kg. Despite this short-term dip, market analysts like Bhupesh Sharma of ET Now Swadesh indicate that the broader trend for both precious metals remains positive, suggesting a "buy-on-dips" strategy. This resilience is attributed to several factors, including the depreciation of the Indian Rupee against the US Dollar, which makes imported gold more expensive and supports domestic prices. Additionally, market expectations of potential interest rate cuts by the US Federal Reserve in upcoming meetings are bolstering gold's appeal, as lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Geopolitical relief also contributes to sentiment. **Impact**: This news directly influences commodity prices and investor sentiment towards precious metals. A continued positive trend in gold and silver could attract investment, potentially diverting funds from equity markets or acting as a hedge against inflation. The factors influencing prices (rupee, Fed policy) are crucial macro indicators for the Indian economy and stock market. **Impact Rating**: 7/10 **Difficult Terms Explained**: * **Profit-booking**: Selling an asset after its price has risen to secure the gains made. * **Bullion**: Uncoined gold or silver in bars or other large quantities. * **Buy-on-dips**: An investment strategy where investors buy an asset when its price falls temporarily, expecting it to recover. * **Rupee depreciation**: When the value of the Indian Rupee falls relative to other currencies, like the US Dollar. * **US Federal Reserve**: The central bank of the United States, responsible for monetary policy. * **FOMC**: Federal Open Market Committee, the principal monetary policymaking body of the US Federal Reserve. * **Opportunity cost**: The potential benefit an investor misses out on when choosing one investment over another.