Gold and Silver Pricee today | Prices Fall in India as Dollar Strengthens
Gold and silver prices in India fell on Wednesday, September 13, 2023, as the US dollar strengthened against other major currencies. The dollar index, which measures the greenback’s value against a basket of six currencies, rose to 93.25, its highest level since August 23. A stronger dollar makes gold and silver more expensive for buyers in other currencies.
According to the data the price of 10 grams of 24-carat gold in India was Rs 59,340 on Wednesday, down by Rs 400 or 0.67% from Rs 59,740 on Friday, September 8. The price of 10 grams of 22-carat gold was Rs 56,370 on Wednesday, down by Rs 359 or 0.63% from Rs 56,729 on Friday.
The price of silver also declined on Monday, as it was trading at Rs 71,980 per kg, down by Rs 720 or 0.99% from Rs 72,700 on Friday.
The table below shows the difference between the gold and silver prices today and one week ago in different cities in India:
|City||Gold Today (Rs ₹/10gm)||Gold 1 Week Ago (Rs ₹/10gm)||Difference (Rs ₹/10gm)||Silver Today (Rs ₹/kg)||Silver 1 Week Ago (Rs ₹/kg)||Difference (Rs ₹/kg)|
The fall in gold and silver prices in India is in line with the global trend, as both the precious metals declined in the international markets on Monday. According to Reuters, spot gold was down by 0.4% at $1,787.06 per ounce and spot silver was down by 0.7% at $23.63 per ounce.
The main factors that influenced the gold and silver prices were the expectations of a tapering of the US Federal Reserve’s bond-buying program and a recovery in the US economy. The Fed is expected to announce its plans to reduce its monthly asset purchases at its policy meeting later this month or in November. The tapering of the stimulus measures could boost the dollar and reduce the demand for gold and silver as safe-haven assets.
The US economy also showed signs of resilience despite the impact of the Delta variant of the coronavirus. The US consumer sentiment index rose to a revised reading of 71 in August from a preliminary reading of 70.2. The US producer price index also increased by a higher-than-expected rate of 0.7% in August from July. These data indicated that the US economy was coping well with the inflationary pressures and the pandemic challenges.
However, some analysts believe that gold and silver prices could rebound in the near term as there are still some uncertainties and risks in the global scenario. The rising cases of Covid-19 infections in some countries could hamper the economic recovery and increase the demand for safe-haven assets. The geopolitical tensions between China and Taiwan could also escalate and create volatility in the markets. Moreover, the physical demand for gold and silver in India could pick up ahead of the festive season that starts from October.
Therefore, gold and silver investors should keep an eye on the developments in the US and global markets and also monitor the domestic factors that could affect the prices of the precious metals in India.