On March 20, 2023, gold prices took a dip of ₹300, settling at ₹91,650 per 10 grams in New Delhi, marking the end of a brief three-day upward trend. This decline is attributed to a drop in global precious metal rates, as reported by the All India Sarafa Association. Just the day before, gold had reached a record high of ₹91,950 per 10 grams, reflecting a ₹700 increase.
Gold and Silver Prices Take a Hit
- 99.5% purity gold saw a decrease, falling to ₹91,200 per 10 grams from its previous close of ₹91,500.
- Silver also experienced a significant fall, dropping ₹1,500 to ₹1,02,000 per kg compared to the previous closing price of ₹1,03,500.
In the past three sessions, gold prices surged by ₹2,500, achieving an all-time high, while silver recorded an increase of ₹2,300 per kg.
Global Market Trends
In global markets on the same day, spot gold prices decreased by USD 14.44 (0.47%) to USD 3,033.35 per ounce, despite reaching a peak of USD 3,057.36 per ounce earlier in the morning. Similarly, April delivery Comex gold futures dropped by 0.11% to USD 3,038 per ounce, after hitting a session high of USD 3,065.09 per ounce.
According to Kotak Securities, "Even though Comex gold futures briefly hit a record USD 3,065.2 per ounce before retracting to about USD 3,042, they remain steady due to strong safe-haven demand amid rising geopolitical tensions."
Economic Factors at Play
The market is also being affected by ongoing global trade concerns, including potential new tariffs and existing duties imposed by the US. Chintan Mehta, CEO of Abans Financial Services, indicated that investors will be keeping a close eye on the US weekly unemployment claims data set to be released later today, as it will provide insights into the labor market’s health.
Mehta further noted, "Investors are keen on US Federal Reserve Chair Jerome Powell’s upcoming press conference in Washington. They are looking for clues on how policymakers are considering the impact of Trump’s policies and potential responses to any worsening economic conditions."
As the situation evolves, market participants will remain alert, navigating the interplay between local price fluctuations and global economic trends.
