Today’s Gold and Silver Rate: Amid the ongoing tension in West Asia, there was a fall in the prices of gold and silver on bullion on Monday. The price of silver fell by Rs 1040 to Rs 2.27 lakh per kg. Whereas the price of gold fell by Rs 1050 to Rs 1.46 lakh per 10 grams.
Condition of gold and silver in the global market
A fall in gold prices was recorded in the global market on Monday. Rising energy prices have stoked inflation concerns, dampening expectations that the US Federal Reserve will cut interest rates this year. For this reason, investors’ inclination seems to be shifting away from gold.
Spot gold fell 0.6% to $4,466.99 an ounce, while US gold futures for April delivery also fell 0.6% to $4,496.30 an ounce. Spot silver fell 1.3% to $68.67 an ounce.
Talking about other precious metals, platinum rose 0.3% to $ 1,868.11 and palladium rose 1% to $ 1,391 an ounce.
Gold fell by more than 15% in the month of March
There has been a big fall in gold in the month of March. Prices have fallen more than 15% so far, the biggest monthly decline since October 2008. The strength of the US dollar is being considered the main reason behind this decline. The dollar has strengthened by more than 2% after the ongoing tension between America, Israel and Iran.
According to experts, there has been a big change in the perception regarding interest rates in the market. Whereas earlier there was expectation of rate cut twice this year, now traders see its possibility as very less. Higher energy prices could push up inflation, making it difficult for the Fed to ease policy.
Although gold generally strengthens as a safe haven when inflation rises, higher interest rates weaken demand for this non-interest-yielding metal.
Brent crude price reached $115 per barrel
Meanwhile, there has been a tremendous rise in the prices of crude oil. Brent crude has crossed $115 per barrel, marking a record gain of nearly 60% in March. The surge comes after attacks on Israel by Yemen’s Houthi rebels, further escalating tensions in West Asia.
What is the opinion of experts?
US President Donald Trump has also said that he wants control over Iran’s oil resources and has talked about capturing a major export center like Kharg Island. Experts believe that the slight recovery in gold last week may be a reaction to the oversold situation, but the further direction will depend on the news coming in the market and global developments. For now, there is a possibility of market instability.
