96 hours before Dhanteras, gold and silver became cheaper, prices are now in Delhi

About 96 hours before Dhanteras, gold and silver prices in Delhi are witnessing a drop. Because of this, the price of gold in the country’s capital Delhi has come down to 1.42 lakh rupees per ten grams. According to the report, the price of gold in the capital Delhi has fallen by Rs 700 to Rs 1.41 lakh per 10 grams. A global sell-off and correction in crude oil prices have made investors cautious.

Gold and silver have become cheaper in Delhi

According to the All India Bullion Association, the price of gold of 99.9 per cent purity fell by Rs 700 to Rs 1,41,800 per 10 gram (inclusive of all taxes) from Monday’s level of Rs 1,42,500 per 10 gram. Silver, which was stable in the previous session, also recorded a decline. It was Rs per kg in the previous session. 1.86 lakhs down to Rs. 2,000 reduced to Rs. 1.84 lakh per kg (inclusive of all taxes).

Why gold and silver became cheaper in Delhi?

Saumil Gandhi, Senior Commodity Analyst, HDFC Securities, said gold prices fell on Tuesday due to weaker global cues and improvement in crude oil prices in the international market. However, the upcoming festive season could support gold and silver prices in the domestic market, he said. Jewelery purchases are expected to increase ahead of Dhanteras and Diwali, as buying gold on these occasions is considered auspicious.

Weakness in foreign markets as well

In international markets, spot gold fell US$41.19 (or 1.04 per cent) to US$3,905.44 an ounce while silver fell more than 3 per cent to US$48.97 an ounce. Jatin Trivedi, Commodity and Currency Research Analyst (VP) at LKP Securities, said gold prices saw a sharp drop as traders continued to book profits, putting pressure on gold and silver.

What are investors waiting for?

He further said that this selloff has pushed prices closer to ‘oversold’ levels. However, continued price improvement will depend on new buying and global cues. Trivedi said investors are awaiting key developments related to the US, including election results due today, unemployment figures and ‘non-farm payrolls’ data. This may provide new clues about the Federal Reserve’s future policy.