Prices for Silver and Gold remain volatile amid global uncertainty as we move into October 17. On the day before trading, the price of Gold saw a slight rise, while silver prices were steady across the large Indian cities.
The tensions between geopolitics and the market regarding central bank policy have significantly impacted the market trend.
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Gold Prices in Major Cities
Prices for Gold in India experienced a sharp increase on October 16, with gold prices of 24 carats for Rs78,073 a gram in Delhi.
It’s the increase in cost of Rs290 in comparison to the previous day’s price of Rs77,783 for 10 grams. In the last few days, Delhi has gradually increased from the rate of Rs76,803 recorded on October 11, indicating an upward trend that will continue.
In Chennai, Gold prices also mirrored this trend, and the cost for 24-carat Gold was set at Rs77,921 per ten grams, an increase from Rs77,631 the day prior.
Mumbai was also a witness to similar increases in price, with the rate settling at Rs77,927 a gram. With Rs77,925 per 10 grams, Kolkata was next with a slight but steady growth across all major markets.
The recent volatility in gold prices has created interest from investors. In the last week, the value of Gold fluctuated by -1.26%. In comparison, the period witnessed a larger reduction of -5.49%, signifying the more intricate interplay between market forces.
Silver Rates Across India
Silver prices have remained more stable than Gold; however, they do see slight fluctuations based on the locale. On October 16, Silver was valued at Rs 1,00,000 per kilo in Delhi, and there were no changes over the day before.
But, just a week ago, on October 11, the price was much lower, at Rs97,000. This reflects an increase of Rs3,000 in only five days.
In Chennai, silver prices were 1,05,600 per kilogram on October 16 16, which was unchanged from yesterday’s price. This is an impressive increase from Rs1,02,600 one week earlier.
Mumbai has seen a slight rise in silver prices, too, and the current price is Rs99,500 for a kilogram, in contrast to Rs97,300 one week prior. Kolkata was similar, and the price was Rs 1,00,800 per kilogram.
Market Dynamics: Key Drivers of Fluctuations
The recent price changes in Silver and Gold could be attributed to a variety of global issues. One of the main factors is the ongoing geopolitical tensions that are raging in the Middle East.
The Israeli conflict with Hezbollah increases and the possibility of a more significant conflict with Iran is short; investors are flocking to Silver and Gold as safe-haven investments.
It is reported that the European Central Bank (ECB) will announce its monetary policy decision this week, and there is potential for a 25-basis point interest rate reduction.
This is further bolstering the increase in silver and gold prices. In the past, low interest rates tended to be low interest rates tenderest rates. They reduced the risk of holding non-yielding assets such as Gold.
Futures Market Insights
The futures market has experienced significant fluctuations. The November 2024 gold futures at the Multi Commodity Exchange (MCX) were traded at Rs1,041 per 10 grams, indicating an increase of 1.839%. Silver, the futures of November 2024 jumped by 5.503%, trading at Rs1,936.5 each kilogram.
Expert Insights and Recommendations
As per Manoj Kumar Jain of Prithvi Finmart Commodity Research, both the gold price and the silver market have demonstrated the ability to withstand significantly when geopolitical threats and market volatility grow.
Jain said
Gold nearly tested its previous highs on Wednesday, and the price surpassed the records in domestic market prices. The price of Silver has risen. Is in line with the same trend, indicating the precious metals’ strength.
Jain also stated his belief that the strength of the US dollar plays a major role in restricting future gains for Gold and Silver.
He anticipates that the market will remain unstable throughout the week, with Gold possibly holding at $2,600 per troy ounce and silver trading at $30.00 for a troy ounce on the international market.
Regarding the market in India, Jain suggested that Rs76,400 supports Gold to 76,140 and that there is a resistance between Rs76,850 and 77,100 on the MCX.
On the other hand, Silver has support of between Rs91,650 and 91,000 and resistance of Rs92,850 to 93,500.
With these forecasts in mind, investors should be on the lookout for buying opportunities. Jain advised buying Gold at the price of Rs76,500.
This includes an initial stop loss of Rs76,240 and a target of Rs77,000. The same applies to Silver. It is available for purchase from Rs91,650, with an initial limit loss of Rs91,000 and a goal of Rs93,000.
The markets for Silver and Gold remain active and driven by external influences such as international political developments, central bank decisions, and the force of the US dollar. Investors are advised to monitor these developments for informed choices.
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