Mumbai, March 13: Amid rising tensions in the Middle East, global markets have experienced instability, leading to a drop in the prices of precious metals, gold and silver, on the last trading day of the week, Friday.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 999 purity gold fell to ₹158,399 per 10 grams on Friday, down from ₹160,303 the previous day. This marks a decline of ₹1,904 in just one day.
In terms of silver, the IBJA reported that the price of 999 purity silver reached ₹260,488 per kilogram on Friday, a decrease from ₹268,301 per kilogram on Thursday. This translates to a drop of ₹7,813 per kilogram in a single day.
As of the time of writing this report (around 7:35 PM), gold for April delivery was trading at ₹160,002 per 10 grams, reflecting a decline of ₹269 or 0.17%. Meanwhile, silver for May delivery saw a decrease of 0.78%, dropping ₹2,099 to trade at ₹265,863 per kilogram.
Both precious metals recorded a decline from the start of trading on Friday. Gold opened at ₹160,251 and briefly touched a daily high of ₹160,673, while the lowest price for the day was ₹158,764 per 10 grams. Silver began trading at ₹266,001, reaching a daily high of ₹269,186 before falling to a low of ₹260,752 per kilogram.
Market experts indicate that the price range of ₹156,000 to ₹157,000 remains a strong demand zone for gold. One analyst noted that as long as gold prices stay above this level, a bullish trend is likely to continue in the medium term. If prices break above ₹165,000, it could pave the way for a surge towards ₹175,000 to ₹180,000.
This week has seen significant fluctuations in gold and silver prices due to the instability in global markets stemming from rising tensions in West Asia.
Analysts suggest that news of a potential U.S.-Iran conflict, fluctuations in the U.S. dollar, and oil prices have contributed to this instability, impacting precious metal prices.
An expert pointed out that the blockade in the Strait of Hormuz is driving crude oil prices higher, strengthening the petrodollar system, which causes gold, oil, and dollar rates to move in opposite directions.
The expert further explained that despite geopolitical uncertainties, a strong dollar, rising interest rates, and uncertainty regarding the Federal Reserve’s policy stance have negatively affected market sentiment, resulting in the observed decline in gold and silver prices.
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