On Monday, December 22, the precious metals market saw another rally. According to the All India Sarafa Association, gold prices hit a fresh high in Delhi, up ₹1,685 from the previous high, to ₹1,38,200 per 10 grams. Silver prices also broke records and touched ₹2,14,500 per kg, down from the previous high of ₹10,400 per kg.
According to Saumil Gandhi, senior analyst at HDFC Securities, "Both gold and silver continue to show strength in the bullion market. Both metals hit new record highs on Monday." According to him, the main reasons for the increased interest of investors are the decrease in interest rates at the international level, uncertainty in the US economy and financial concerns.
The impact of the domestic increase in gold and silver prices was also seen in the international market. Spot gold prices rose 1.86 percent to $4,420.35 an ounce. Spot silver rose 3.44 percent to $69.45 an ounce.
Low US interest rates and a weak dollar are attracting investors to silver and gold, analysts say. Additionally, global economic and political instability has strengthened the demand for these metals.
Satish Dondapati, fund manager of Kotak Mutual Fund said, "The rise in silver prices is mainly due to strong industrial demand and rising investment demand."
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