By Admin 
Gold-Silver Price: Due to the war between Iran-Israel and America and increasing tension in the Middle East, there has been a huge fall in the prices of gold and silver this week. On one hand, the price of gold has fallen by Rs 13700 per 10 grams. At the same time, silver has become cheaper by Rs 32700 per kg.
That means the prices of gold and silver have fallen by 8.47 percent and 12.40 percent respectively in just one week. In this way, on March 1, where the price of 24 carat gold was Rs 1,73,090, it has now fallen to Rs 1,45,970. Similarly, where silver was at a high level of Rs 3,15,000 at the beginning of the month, it has now fallen to Rs 2,45,000.
Why is the price falling?
- The US Federal Reserve has indicated to keep interest rates higher than expected for a longer period. When interest rates remain high, investors invest in dollars instead of gold. Due to this the demand for gold decreases and gold becomes cheaper.
- Gold has become very strong in international markets. Since gold is traded in dollars, when the dollar becomes expensive, it becomes expensive for other countries to buy gold. Due to this, its global demand reduces and prices start falling.
- China’s central bank, People’s Bank of China, has stopped purchasing gold for some time. China is the largest buyer of gold in the world. Investors have also become alert due to this move of China and big investors have started booking profits.
sleeping under pressure
Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said, “Gold remained under pressure despite ongoing geopolitical tensions as the market remained focused on the risks of rising inflation and interest rates remaining high for a long time.” Here, there are no signs of the US and Israel’s conflict with Iran slowing down. Oil prices also remain above $100 per barrel.
He further said, “The blockage in the Strait of Hormuz – a vital route for global oil transport – has pushed crude oil prices near four-year highs, adding to concerns about energy-driven inflation.”
What should investors do?
Market guru Anil Singhvi says investors should avoid buying too much gold right now and wait until there are clear signs of the market reaching its lowest level. He said, “We had earlier advised profit-booking, but now our focus is on when to buy because this is not the time to make new purchases in a hurry.”
He has suggested investing gradually over the coming weeks and months instead of making a lump sum purchase. He said, “It will take time for the market to reach the bottom. Investors can think of doing SIP for a short period of time instead of buying more. Market experts say that due to fluctuations in the dollar index, crude oil prices and ongoing geopolitical tensions, gold and silver prices are likely to remain volatile in the future.
Also read:
Goldman Sachs’ entry into this real estate company, block deal worth Rs 230 crore; Know the details