Rise in gold and silver prices

Gold-Silver Price: If these days you are planning to make jewelery or buy gold and silver for investment, then the current trend of the market may force you to stop and think for a while. The turmoil seen in the bullion market on the very first trading day of the week, i.e. Monday, has increased the heartbeats of the investors. A jump has been recorded in the prices of gold and silver on MCX. The biggest question amid this bullishness is whether this is the right opportunity to buy or would it be wise to wait a little more?

Why did there suddenly be a big surge in the market?

Not just one, but many global reasons are responsible for this rise in the market on Monday. The main reason is the weakening of the US dollar. The US dollar has reached its lowest level since February 4. A simple rule of economics is that when the dollar weakens, it becomes cheaper and more attractive for foreign buyers of other currencies to buy gold and silver, which increases demand.

Apart from this, the ongoing geopolitical tensions across the world have also added fuel to the fire. Investors are especially keeping an eye on the relationship between America and Iran. Even though Iran's top diplomat has described the start of nuclear talks with America as positive, Iran has made it clear that it will not back down from its right to uranium enrichment. Analysts believe that such statements will continue to create global tension. Whenever there is an environment of uncertainty in the world, investors leave risky options like stock market and run towards 'safe haven' like gold and silver.

Indications of interest rate cut coming from America

Another big factor supporting the prices is coming from America. Hopes of interest rate cut by the US Federal Reserve have been rekindled. San Francisco Fed President Mary Daly has recently expressed concern over the weakness in the US labor market. He has advocated cutting interest rates once or twice more to handle the situation.

When interest rates fall, it becomes more profitable for investors to hold non-yielding assets like gold. This is the reason why the bullion market has become bullish just because of the rumor of reduction in interest rates.

This is the price of gold and silver right now

Now let's look at the data to see what actually happened in the market. On MCX, gold for February delivery strengthened by 1.31 percent and reached Rs 1,57,484 per 10 grams. The movement of silver was even faster. Silver for March delivery jumped 4.81 percent to Rs 2,61,900 per kg. On Monday, during the day, silver had jumped by 6 percent and the price had gone up to Rs 2,64,885, however later it softened a bit due to profit booking.

Market experts and analysts have suggested some important levels based on technical charts. For gold, the level of Rs 1,54,000 and Rs 1,51,800 will act as a strong support, while on the upside it may face resistance at Rs 1,57,700 to Rs 1,60,000. At the same time, the support level for silver is around Rs 2,36,600 and Rs 2,44,000.

Investor opportunity or risk?

Looking at the current situation, analysts are of the opinion that prices may remain stable at high levels for some time. In the case of silver, industrial demand remains consistent and there is a structural supply deficit, which is keeping prices from falling. Along with this, the way central banks around the world are purchasing gold and there are signs of softening of monetary policies, it seems that the trend of bullion market may remain positive for now.

Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.