look news india
The direct impact of the turmoil in the global bullion market is now visible on the Indian markets too. There has been a sharp fall in the prices of gold and silver due to the US dollar remaining near its record high level and the cautious attitude of investors before the important meeting of the US central bank ‘Federal Reserve’. On Wednesday, spot gold fell to its lowest level in a week in the international market. Market analysts believe that all eyes are on the interest rate decisions and economic statements of the Federal Reserve coming this week, which will indicate the future monetary policy.
New rates of gold and silver in Indian Bullion Market (IBJA)
According to the data of India Bullion and Jewelers Association (IBJA), a big fall in the prices of gold and silver has been recorded in the Indian market for the second consecutive trading day. 24 carat gold has slipped by more than Rs 2,000, while silver has seen heavy selling by Rs 7,000 per kg.
| type of metals | Purity | New price of IBJA (in rupees) |
| 24 carat gold | 99.9% | ₹1,42,291 per 10 grams |
| 22 carat gold | 91.6% | ₹1,30,339 per 10 grams |
| 18 carat gold | 75.0% | ₹1,06,718 per 10 grams |
| Silver | 99.9% | ₹2,17,349 per kilogram |
Prices in international market (COMEX) at one week low
On the international futures market i.e. COMEX, spot gold was seen trading at $ 4,022 an ounce, down by $ 16 an ounce. This is the lowest level since July 21. Apart from this, US gold futures for August also declined by 0.9 percent to close at $ 4,038 an ounce. Internationally, silver has also fallen to the level of $ 57.11 per ounce. The strengthening of the US dollar has made dollar-denominated precious metals costlier for foreign buyers, leading to a decline in global demand.
Why is the pressure on gold prices increasing?
Market experts say that due to the rising cost of energy resources across the world, concerns about inflation are increasing. For this reason, speculations are being made that the US Federal Reserve may keep interest rates high or increase them. Although gold has always been considered an inflation hedge, high interest rates divert investors’ attention from non-interest bearing assets (such as gold).
What are the future projections and possibilities of recovery?
Commodity market analysts estimate that the Federal Reserve may keep interest rates stable in its meeting, but the possibility of increasing rates in the coming September cannot be ruled out. Market experts have reduced the target price of gold by $ 300 to $ 4,500 an ounce by the end of the year. According to experts, unless a softening trend is seen in the interest rate policy of the central banks, it is difficult to see a big rise or recovery in gold. Additionally, despite signs of talks between the US and Iran, geopolitical tensions remain, adding to market volatility.
Disclaimer: Investments in gold and silver are subject to market risks. Be sure to consult your financial advisor before making any transaction or investment in the market.