Gold in the national capital rose by Rs 278 to Rs 46,013 per 10 grams. The improvement in prices in the international market gave a boost to the domestic bullion market. According to HDFC Securities, the rise in the value of the precious metal has been controlled by a sharp rise in the exchange rate of the rupee against the US dollar.
Gold closed at Rs 45,735 per 10 gram in the previous trade. According to HDFC Securities, the price of silver also rose by Rs 265 to Rs 68,587 per kg. On the previous trading day, the price of silver had closed at Rs 68,322.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “The spot price of 24-carat gold in Delhi strengthened by Rs 278. Despite the rise in the rupee exchange rate, gold rose in the domestic market due to rising prices of precious metals in the global markets.
The rupee exchange rate rose 16 paise to 72.49 against the US dollar on Monday. In the international market, gold was quoted at $ 1,774 an ounce while silver was quoted at $ 26.94 an ounce.
Gold shines in the global market
It had reached a seven-month low in the last session in the global market, but today it showed an increase. Spot gold climbed 0.3 percent to $ 1787.31 an ounce, while silver also recorded a 1.3 percent jump and reached $ 27.56 an ounce. It reached the highest level of Rs 56,200 per ten grams in India in August 2020. Since then, its prices have steadily declined. Due to being cheaper, its demand has increased.
However, it is expected to increase its prices in the international market. In fact, with the improvement in the American economy, inflation will increase in the global economy. So investors can buy gold for its hedging. This situation will increase its prices. That is, gold can still be a bit expensive.
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