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Gold & Silver Prices Dip Amid Inflation Fears
25 Apr
Summary
- Gold and silver prices declined on April 24.
- Elevated oil prices fueled inflation and interest rate hike fears.
- Mumbai saw 24-carat gold at Rs 1,53,540 per 10 grams.
On April 24, gold and silver prices experienced a downturn, largely driven by escalating oil prices which intensified fears of inflation and prolonged higher interest rates. Stalled peace talks between the US and Iran contributed to the market uncertainty.
In India, the price of 24-carat gold in Mumbai slipped to Rs 1,53,540 per 10 grams, with 22-carat gold available at Rs 1,40,740 per 10 grams. These figures exclude GST and making charges.
Internationally, spot gold decreased by 0.1% to $4,686.29 per ounce, marking a 3% drop for the week. US gold futures for June delivery also fell. The surge in Brent crude prices, driven by the prolonged closure risk of the Strait of Hormuz, has pressured gold prices.
Analysts suggest that higher crude oil costs can lead to increased inflation due to rising transportation and production expenses. While gold is traditionally seen as an inflation hedge, high interest rates can diminish its appeal by making other yield-bearing investments more attractive.
