Weak Rupee Drives Gold Prices Up, Silver Down

On January 3, 2024, the price of 24K gold in Delhi rose by ₹330, reaching ₹78,490 per 10 grams. The weak rupee caused this increase. The price of 22K gold was ₹71,960 per 10 grams. Meanwhile, silver prices fell to ₹90,400 per kilogram.

Several factors contributed to the rise in gold prices. Global economic uncertainties and foreign exchange market fluctuations played significant roles. A weak rupee makes gold more expensive for Indian buyers since gold is usually priced in U.S. dollars. Additionally, demand for gold as a safe-haven asset during global market volatility pushed prices up.

Rising Gold Prices

Market analysts expect gold prices to continue fluctuating moderately in early 2025. Gold’s status as a safe-haven asset keeps it in demand among investors.

Silver Prices Decline

In contrast, silver prices have shown volatility. Factors such as industrial demand and global economic trends influence silver prices.

Impact of Currency Fluctuations

The recent changes in gold and silver prices reflect the broader economic environment. Currency fluctuations impact commodity prices significantly.

Overall, the rise in gold prices and the fall in silver prices are results of various factors, including global economic conditions and currency fluctuations. Investors and traders will continue to monitor these trends closely for informed decision-making.