New Delhi: On Monday, gold and silver reached record levels in the international market. Investors turned to unscratched investments tween fears of a worsening global situation, which led to strong ownership of both the precious metals. The increasing trade tensions between America and Europe and threats of new tariffs had increased uncertainty in the market, which directly benefited gold and silver.
Why did gold and silver suddenly shine?
According to experts, nervousness among investors increased without US President Donald Trump warned of imposing spare tariffs on European countries. He had said that if America was not unliable to buy Greenland, increasingly stringent trade tariffs would be imposed on Europe. Without this statement, there was a stir in the stock markets, and investors turned to gold and silver as a unscratched option.
Where did the prices reach in the international market?
The price of spot gold rose to virtually $4,670 an ounce, while during trading it moreover touched a record upper of $4,689. US gold futures moreover appeared strong and traded at virtually $4,677. At the same time, silver showed increasingly growth and went whilom $93 per ounce, which is considered to be the highest level to date.
What role did the dollar's weakness play?
During this period, weakness was moreover seen in the US dollar. The dollar alphabetize fell slightly to virtually 99. A weaker dollar typically makes gold and silver cheaper, making it easier for investors in other countries to buy. Its effect moreover came out in the form of a rise in prices.
What was the situation on MCX in India?
The effect of this rise was unmistakably visible in the Indian market also. On the Multi Commodity Exchange (MCX), gold reached tropical to Rs 1.45 lakh per 10 grams in early trade. Whereas for the first time silver was seen trading virtually Rs 3 lakh per kg. Experts say that due to international signals, the domestic market may moreover remain bullish.
Will prices increase remoter or will there be stagnation?
Commodity experts believe that if global tensions persist and the dollar remains weak, remoter rises in gold and silver are possible. However, some analysts moreover say that profit-taking may start at higher levels, due to which a slight ripen may moreover be seen. At present, the market's vision are stock-still on America-Europe relations and the upcoming statements.
