It had closed at Rs 73,094 per 10 grams on the exchange at the previous close on Tuesday.
However, silver contracts for December delivery fell 116 rupees, or 0.13 per cent, to Rs 89,024 per kilogram on Wednesday. In the previous session, the silver metal had closed at Rs 89,140 per kilogram on Tuesday.
According to HDFC Securities, spot gold prices (24 carat) in Delhi markets are trading at Rs 74,850 per 10 grams, down Rs 50 from the previous day.
Meanwhile, silver prices fell Rs 800 to Rs 91,300 per kilogram from the previous close of Rs 92,100 per kilogram.
Globally, Comex gold is trading 0.42 percent higher at US Dollar 2,603.20 per ounce. “Gold prices on the international market are hovering around their historical highs due to demand optimism amid rising geopolitical tensions, weak global growth prospects and hopes for a rate cut by the US Federal Reserve,” Hareesh V, Head of Commodities at Geojit Financial ServicesHe said. Better US retail sales data showed that American consumers are holding their ground, pushing US Treasury yields higher and limiting gains for the precious metal, according to Saumil Gandhi, senior commodity analyst at HDFC Securities.
Additionally, silver prices were quoted marginally lower at USD 30.97 per ounce in international markets.
“The Fed will release its interest rate decision at the conclusion of its meeting later on Wednesday, and U.S. Federal Reserve Chairman Jerome Powell will hold a press conference afterward,” said Navneet Damani, senior vice president of the commodities research group at Motilal Oswal Financial Servicessaying.
On the data front, the focus will be on US housing figures and Consumer Price Index UK and EU CPI data will be released later on Wednesday, Damani said.
The last Fed rate cut was in March 2020 during the Covid-19 pandemic. In the previous week, the US CPI and producer price index were up. Index The data was reported slightly mixed with the annual data on the lower side while the core data was seen slightly higher.
However, Fed Chairman Powell and other Fed officials have expressed concerns about the labor market Keeping rate cut negotiations on the table, he added.
According to analysts, when there is a drop in interest rates, the opportunity cost The tendency to hold non-interest-bearing assets such as gold is waning. A major rate cut could further weaken the US currency, which is already trading near its lowest level this year.
Furthermore, since gold is traditionally seen as a hedge against inflation, investors’ anticipation of an increase inflation Because lower rates tend to further boost investment demand, along with their prices, making them more attractive to investors, they said.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.