Gold Rates Decline on Republic Day
As the tension eases between the United States and Europe, the sparkle of gold and Silver dimmed on Republic Day in India. After a day of stability, gold Prices fell again today. In the capital city of Delhi, 24-carat gold has decreased by ₹10 per ten grams, while 22-carat gold also saw a drop of ₹10. Over the past week, from January 19 to January 25, including one day of decline, the prices for 24-carat gold increased by ₹16,480 and 22-carat gold rose by ₹15,100.
Silver Prices Retreat Again
Flip-flopping after a day of stability, silver prices dropped today. From January 19 to January 25 of the previous trading week, silver had risen substantially by ₹40,000 but today, January 26, it fell by ₹100 in Delhi, selling at ₹3,34,900 per kilogram. In other major cities, such as Mumbai and Kolkata, silver is priced similarly, but Chennai reported the highest rates, with silver costing ₹3,64,900 per kilogram.
Investor Response to Silver Surge
The robust retail buying, momentum-based investments, and a long-standing supply crunch in the physical market have caused a rapid surge in silver prices, surprisingly more so than gold. The increasing geopolitical tensions and demand for secure investments are strengthening gold, which has also benefited silver. Analysts note that silver is currently tracking gold, partly due to its lower unit price, attracting more participation from small investors. However, some experts are advising caution. Rona O’Connell, an analyst at StoneX, warns that while everyone wants to participate in silver’s rally, it may also serve as a warning. A sudden weakness could trigger a sharp decline.
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