Silver Falls Rs 50 per 10 gm on Friday, After Flatlining In Previous Session

Mumbai, July 24: Silver prices in India traded lower on Friday slipping Rs 50 per 10 grams to hit a national average rate of Rs 2,350 per 10 grams or Rs 235 per gram and Rs 2,35,000 per
kg.

Both Thursday and Friday’s price action for silver posted flat gains intraday before changing direction toward the close, so spot prices had held steady between Rs 2,350 and Rs 2,400 across Wednesday, Thursday and most of Friday until market participants started booking profits. This loss came despite gold easing off record highs set earlier on Friday, suggesting some participants across both metals opted to book profits to end the week. 

Spot Silver was trading entirely flat across both Wednesday and Thursday sessions after rising Rs 50 at the start of the week. Bullion dealers described that price action as “consolidation” and did not view it as resistance or support. Friday’s loss interrupted silver’s streak of two flat trading sessions.  

Dealers in the bullion market said Friday’s fall was due to profit booking after silver’s recent rally, and also attributed it to dollar index trading firmer on Friday which tends to weigh marginally on dollar-denominated commodities by making them slightly more expensive for buyers looking to purchase with foreign currency. Until domestic demand from the jewellery and industrial sector improves further, prices will continue to trade primarily off international prices.  

In recent months, demand from India’s electronics manufacturing sector and solar photovoltaic panel producers have supported the price floor in silver, even as prices pulled back sharply across a couple of sessions this week. Silver currently trades over Rs 400 per 10 grams higher than where it started the month despite Friday’s decline. 

City-wise Comparison: What Changed from Friday vs Wednesday 

Slipping totemically from where it stood on Wednesday, every city in the rate survey saw prices lower on Friday. Since the rates traded flat on Wednesday and Thursday before dipping on Friday, we will compare each city’s rate from Friday to where they stood on Wednesday.  

The biggest premium came from Chennai which priced gold at Rs 2,450 per 10 grams on Wednesday and declined by Rs 50 to Rs 2,400 on Friday. Hyderabad and Kerala also declined Rs 50 from Rs 2,450 per 10 grams on Wednesday to Rs 2,400 on Friday. Mumbai, Delhi, Kolkata, Bangalore, Pune, Vadodara and Ahmedabad’s rates came down Rs 50 as well, trading down from Rs 2,400 on Wednesday to Rs 2,350 on Friday. This is significant because every city in India dipped by the exact same amount with no outliers, suggesting that national pricing rates were rejigged rather than any city experiencing a unique increase or decrease in demand vs supply. As a result, the spread between Chennai, Hyderabad and Kerala and the rest of the country remains at Rs 50. 

Gold today also eased across India dropping Rs 350 to reach Rs 1,46,170 per 10 grams. August 22k gold fell Rs 320 to Rs 1,33,990 per 10 grams, while August 18k gold traded Rs 260 lower at Rs 1,09,630 per 10 grams. After sharp spikes to record highs on Wednesday, gold traded flat on Thursday before giving back some of those gains on Friday. Both metals will likely continue to react quickly to news headlines about the US Federal Reserve and Iran-US conflict as market participants go into the weekend. 

“When both gold and silver declined together, that represents a broad pullback by the entire precious metals complex,” said a bullion dealer talking about Friday’s price action. He added that buyers had moved to book profits after a strong run earlier in the week, and expected safe-haven demand to have taken a back seat. It’s still recommended to stay live on prices throughout the day, as gold and silver prices can move significantly between morning and evening in India.  

Buyers should remember making charges and the 3 per cent GST applied to bullion purchases, along with any state-level taxes that get added to the gold/silver rate quoted by jewellery stores. These will add several thousand dollars to the final bill price depending on how much gold or silver someone purchases. Tension between Iran and the United States is expected to remain in focus throughout the week. If tensions escalate further, analysts believe we could see silver (and gold) rally from these levels again. However, if there’s news that tensions are de-escalating, these gains might be erased. 

10 Gram Silver Rates Across Major Indian Cities — Friday vs Thursday 

Source

•  goodreturns.in