New Delhi, Mar 12 (PTI) Silver prices gained Rs 1,500 to Rs 2.76 lakh per kilogram in the national capital on Thursday amid firm global trends and intensifying West Asia crisis.
According to the All India Sarafa Association, the white metal climbed by Rs 1,500, or 0.54 per cent, to Rs 2,76,500 per kilogram (inclusive of all taxes). It had closed at Rs 2,75,000 per kg, down by Rs 4,275 on Wednesday.
Prices of gold of 99.9 per cent purity retreated Rs 400, ending a three-day rally, to Rs 1,65,200 per 10 grams (inclusive of all taxes) from the previous close of Rs 1,65,600 per 10 grams.
Analysts said gold and silver moved in opposite directions as investors weighed geopolitical developments and macroeconomic signals from the United States.
Gold prices slid slightly, reflecting a minor decline amid a firmer dollar and persistent inflation concerns, while silver showed resilience as traders reacted to potential buying opportunities amid geopolitical tensions related to the US-Iran situation, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
Meanwhile, in the international markets, spot silver gained USD 1.25 or 1.47 per cent to USD 86.99 per ounce, and gold traded marginally higher at USD 5,178.45 per ounce.
“Spot gold continues to trade inversely to crude oil prices. The metal is trading in the narrow band of USD 5,100-5,250 per ounce,” Praveen Singh, Research Analyst, Mirae Asset ShareKhan, said.
He noted that Iran warned that the world should be prepared for crude oil to surge as high as USD 200 per barrel as tensions escalate in the Persian Gulf, including attacks on merchant vessels in the blockaded waters.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said investors consider that the latest US Consumer Price Index (CPI) inflation report does not yet fully reflect the recent surge in fuel costs following the escalation of the Middle East conflict nearly two weeks ago.
“The combination of rising energy prices and firm economic data pushed US Treasury yields higher and supported the dollar, creating headwinds for gold and silver,” Gandhi said.
He added that persistent price pressures could prompt major central banks to remain cautious about monetary easing, adding to the near-term pressure on precious metals.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, investors are awaiting cues from the US Core Personal Consumption Expenditures (PCE) price index, along with GDP numbers to be released on Friday, which could influence expectations around the Federal Reserve’s rate outlook. PTI HG HVA
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