Silver Prices Rise Rs 50 per 10 gm, Recover Friday’s Losses

Mumbai, July 27:  Silver prices in India gained Rs 50 per 10 grams on Monday and climbed back to Rs 2,400 per 10 grams, or Rs 240 per gram and Rs 2,40,000 per kg, scaling back all of the loss seen in Friday’s trade. Having closed the previous session at Rs 2,350 after dipping from where it had traded throughout Wednesday and Thursday, Monday’s advance brings the price back to levels seen earlier in the week.  

Dealers attributed the move higher to fresh safe-haven demand, as tensions between Iran and the US hit a record 12th day while crude oil prices continue to hover over $91 per barrel and weigh on risk appetite in global commodity markets. The price of silver in India is also heavily dependent on international prices which can fluctuate up and down during the day, and domestic quotes naturally rose in step with global bullion on Monday as traders await new developments from the weekend.

Dealers noted that silver has also been propped up by steady demand from industrial sectors like electronics and solar photovoltaic throughout the month, buying the metal up at every dip even as it has traded between Rs 2,350 and Rs 2,450 for the better part of last week.  

The price rise led all cities in India to trade at Rs 2,400 per 10 grams on Monday, with most centres having dipped to Rs 2,350 per 10 grams alongside Friday’s close. Mumbai, Delhi, Kolkata, Bangalore, Pune, Vadodara and Ahmedabad each rose Rs 50 to Rs 2,400 per 10 grams on Monday. Chennai, Hyderabad and Kerala were unchanged at Rs 2,400 per 10 grams on Monday as those cities were trading at Rs 2,400 throughout the previous session as well. Having traded at a Rs 50 premium to the rest of India on Friday, those cities have now aligned with the other seven cities surveyed as of Monday.  

Dealers expect gold and silver to trade based on geopolitical developments in West Asia as well as speeches and commentary from the US Federal Reserve this week.  

“We saw both gold and silver rise today in unison, suggesting this was a macro-driven move to safe-haven assets rather than buying into just one metal,” said a bullion dealer. “Overall, investors are likely to remain risk-off until the latter stages of the week.”  

Consumers should keep in mind that bullion purchases are subject to making charges at retail stores as well as the 3 per cent GST and any applicable state taxes when calculating the total cost of buying gold and silver. Analysts said further escalation of Iran-US tensions could very well take both metals higher from current levels, while any resolution in the conflict could just as quickly eliminate the gains seen on Monday.  

Silver prices have traded higher for most of July, having started the month near Rs 2,300 per 10 grams. The rally has been attributed to rising safe-haven demand as well as robust demand from industrial sectors. “The sharp return to Rs 2,400 suggests sentiment could turn either way based on the newsflow,” said a dealer. “Traders should be prepared for swings within the day as well, since bullion rates in India can move sharply between the morning and evening fix if the Iran-US crisis escalates.”  

Source: goodreturns.in 

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

Source

• goodreturns.in