On Tuesday, silver prices in the national capital touched Rs.1 per kg for the first time in 10 months. 2 lakh had come down. At the same time, gold prices rose by Rs. 500 was reduced. Weakness in global bullion markets and dollar strength weighed on investor sentiment. If experts are to be believed, gold and silver prices may fall further in the coming days. The biggest reason could be the policy announcement after the Federal Reserve meeting. In which one more reduction can be seen. According to experts, if the Fed cuts rates by another 25 basis points, gold and silver prices may fall. Let us also tell you what the gold and silver prices have been in Delhi, the capital of the country…

Silver at 10-month low

According to the All India Bullion Association, silver prices were Rs. 4,000 reduced to Rs. 1.98 lakh per kg (inclusive of all taxes), which is the lowest level in the last 10 months. In the previous session, silver was Rs. 2.02 lakh per kg was closed. On December 16, the price of silver was Rs 1,98,500 per kg. The price of gold of 99.9 percent purity is also Rs. 500 reduced to Rs. 1,45,800 per 10 grams (inclusive of all taxes). It closed at Rs 1,46,300 per 10 grams on Monday. Jatin Trivedi, Commodity and Currency Research Analyst (VP) at LKP Securities said gold remained under pressure in the domestic market due to the strength of the dollar and continued weakness in precious metal prices in international markets. On further trends, Trivedi said that gold prices in the domestic market are expected to remain volatile and in the near future it is expected to reach Rs. 1.40 lakh to Rs. 1.44 lakh per 10 grams may be in the range.

Condition of foreign markets

In global markets, spot gold fell marginally to $4,011.44 an ounce while silver fell more than 1 percent to $53.41 an ounce. After touching a 3-month low of $3,975 an ounce in the international market, gold is now stabilizing around $4,000 an ounce, said Akshat Siddhant, lead quantitative analyst at investment platform Mudrex. The softness in oil prices has brought some relief.

Will there be further declines?

Gaurav Garg, head of research at brokerage platform ‘LEMON’ said that silver has underperformed gold. That shows heavy selling pressure below the $54 an ounce level, which is near its 11-month low. Apart from this, there is concern about industrial demand. Saumil Gandhi, senior commodity analyst at HDFC Securities, said investors are cautious ahead of the US Federal Reserve’s monetary policy meeting on October 28. “The decision on interest rates at this meeting and the signals given by Chairman Kevin Warsh could determine the future direction of the market.”