The prices of gold and silver, which are considered safe investments, saw a rise on Tuesday. Amidst the weakening of the US dollar and increasing uncertainty in the market regarding the situation in West Asia, investors again increased buying of bullion. The price of silver increased by Rs 9250 to Rs 2.77 lakh per kg. At the same time, the price of gold increased by Rs 1230 to Rs 1.62 lakh per 10 grams.
Condition of gold and silver in global markets
During Asian trading, the price of spot gold rose by about 1% to $ 5,145 an ounce, while spot silver saw a sharp rise and its price increased by about 4% to $ 87.9 an ounce. However, before this, some decline was also seen in both the metals. US President Donald Trump had indicated that the ongoing conflict with Iran is almost at an end. After this statement, investors’ inclination towards safe investments had reduced. Meanwhile, the US Dollar Index also strengthened to 99.42. Due to the strengthening of the dollar, metals which are usually priced in dollars become expensive for investors in other currencies, which can put pressure on demand. According to analysts, rising tensions in West Asia have led to a surge in energy prices, increasing the fear of rising inflation. For this reason, investors hope that the Federal Reserve and other central banks can maintain interest rates at a high level for a long time or even increase them further. Higher interest rates are generally considered a negative for non-interest bearing metals like gold and silver.
