Gold price crosses record Rs 73,300
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Gold Price Hike: The war between Iran and Israel is almost imminent in the Middle East. On the other hand, the war between Russia and Ukraine has also intensified. The effect of geo politics is visible in the prices of gold. The price of gold in the domestic market has crossed Rs 73 thousand. In Delhi’s bullion market, the price of gold has crossed the level of Rs 73,000 per 10 grams with a jump of Rs 1,050. Whereas, the price of silver jumped by Rs 1,400 and reached a record level of Rs 86,300 per kg. The price of gold has increased by $ 48 from the previous closing price in the international market to $ 2,388 per ounce. Due to rising prices of gold, there has been a big decline in the demand for jewelery in the domestic market. This can create a big problem for the sellers.
There was a rise in futures trading also
On Friday, gold prices rose by Rs 1,156 to Rs 72,800 per 10 grams in futures trade due to buying of fresh deals by speculators amid strong spot demand. In the Multi Commodity Exchange, the price of the contract for delivery in the month of June increased by Rs 1,156, or 1.61 percent, to Rs 72,800 per 10 grams. In this, 23,548 lots were traded. Market analysts said that gold futures prices rose due to buying of fresh deals by traders. Globally, gold rose by 1.76 percent to $ 2,414.40 an ounce in New York.
Also Read: Great news for Indian economy! Industrial production increased with decline in retail inflation.
Effect visible in retail market
Leading jewelery retailer Senco Gold Ltd. Said that the recent sharp rise in gold prices due to geopolitical reasons has reduced its demand. The performance of the industry in the first quarter depends on the ongoing shopping trend on the occasion of festivals and New Year. A top official of the company said that there has been a decline of 15-20 percent in sales in March and April. Suvenkar Sen, managing director and chief executive officer of Senco Gold, said that in the last 30 days, the price of gold has increased by about 10 per cent and in the last six months it has become costlier by 23-25 per cent. This sharp fluctuation has affected the retail buying sentiment. There has been a decline of 15-20 percent in terms of volumes for the industry. Eid, Bengali New Year, Akshaya Tritiya and regional New Year are expected to improve demand, but restrictions on movement of cash due to the election code of conduct may prove to be a hindrance for some retailers.
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