The price of gold and silver remained in a very good upward trend on January 28 as both the precious metals were trading close to the records in various Indian cities. The current high demand by investors, economic uncertainty in the world market and still ongoing geopolitical tensions have led traders to the conventional safe haven trades and have driven the rally.
The domestic bullion market is another market where gold prices are strong. 24 carat gold is also being retailed at 1,58,170 per 10 grams in Mumbai. Delhi comes next and the gold price there is at around Rs 1,57,900 per 10 grams.
Once again cities in the south are recording slightly more. Chennai is in the forefront of the metros, and gold is being sold almost at Rs 1,58,630 per 10 grammes. Hyderabad and Bengaluru are experiencing the high rates as well with the prices of around Rs 1,58,420 and Rs 1,58,300 respectively. Gold trade is being done at about Rs 1,57,960 per 10 grams in Kolkata.
The gradual increase in the price of gold is evidence of an ongoing purchase behaviour on the part of investors as well as retail consumers.
According to market analysts, the current uncertainty in the world trade policy and interest rates in main economies is driving investors to transfer funds to gold as a hedging measure. Prices are also being supported by seasonal demand and purchases in India relating to wedding related purchases.
Silver has been the outstanding performer in recent plays and it has out gained gold in terms of percentage returns. The price of silver has shot up in Mumbai to approximately Rs 3,56, 140 per kg. Delhi is also registering the same strength, with the rates almost reaching to Rs 3,55,530 per kilogram.
Silver trade is currently doing at about Rs 3,57,180 per kilogram in Chennai and at about Rs 3,56,710 per kilogram in Hyderabad, in the southern markets. Bengaluru also costs almost Rs 3,56,430 per kilogram and Kolkata is almost closed at Rs 3,55,670 per kilogram.
Not only is Silver gaining momentum due to its position as a precious metal, it is also benefiting because of an increasing industrial demand. In the physical market, solar panels, electronics, and new technologies have also been common in the metal, thus straining the supply. This is a two-tier demand between the investors and industries that has assisted the silver to excel over the gold over the past few weeks.
The prices of bullion have also shot up internationally. The weak US dollar and robust safe haven buying have made Gold to climb to historic highs in world markets.
Shareholders worldwide are seeking security against fluctuating currency, declining economic growth issues, and persistent geopolitical threats. Silver prices in international trade have also been moving high in global trade and it is in line with the high domestic trend that has been observed in India.
The upcoming economic events particularly the policy decisions of the central banks and any developments concerning the global trade have come under a close scrutiny of the market participants.
Any indication of interest rates or inflation patterns may affect the future trend of bullion in the next few weeks. Increased expectations of low interest rates tend to favour gold and silver since low interest rates lower the opportunity cost of holding non-interest-bearing assets.
The sharp rally notwithstanding, physical gold jewellery in India continues to be in demand, especially given the fact that some parts of the country are heading towards the wedding season. Nevertheless, the use of high prices can result in the delay of big purchases among the buyers or the transition to light designs.
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All in all, the bullion market still shows a good momentum whereby both gold and silver are being traded at high prices within the major cities. With the world full of uncertainties and investors very keen on buying safe assets, the precious metals prices will continue to be stable in the immediate future though occasionally influenced by the international economic signals.
