Gold and Silver Prices: Silver rises over 1%, gold remains steady; what is the reason for the price fluctuations?

Gold and Silver Prices Today: Gold prices appeared stable in early trading on Wednesday (September 23), while silver saw gains. Investors kept a close watch on US-Iran talks, oil prices, and the outlook for US interest rates.

As of the time of writing on September 23, COMEX gold was trading at $4,380.90 per ounce, up 0.10%. The contract touched a high of $4,407.50 per ounce and a low of $4,378.60 per ounce.

COMEX silver stood at $67.360 per ounce, a rise of 1.25%. During the session, the metal traded between $68.055 and $67.240 per ounce.

Gold prices have remained sensitive to fluctuations in oil prices as investors assess their impact on inflation and the US Federal Reserve's interest rate trajectory. High energy prices can increase inflationary pressure, potentially influencing interest rate expectations, while higher interest rates can weigh on non-yielding assets like gold (which do not generate regular income).

According to Reuters, oil prices saw a slight decline in early trading on Wednesday (September 23). By 0119 GMT, Brent crude had fallen 0.07% to $99.18 per barrel, and West Texas Intermediate (WTI) had dropped 0.39% to $90.17 per barrel.

Prices in India

According to local traders, gold prices in the Indian market (specifically in New Delhi) fell by ₹1,500 to ₹1.54 lakh per 10 grams on Tuesday (September 22), while silver prices remained steady at ₹2.42 lakh per kilogram.

The decline in gold prices in the domestic market occurred amidst a strengthening US dollar and hawkish comments from Federal Reserve officials. Where the market's focus lies

Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, stated that the easing of oil prices provided some relief by alleviating concerns regarding inflation. Investors are also keeping a close watch on comments from Federal Reserve officials for further cues regarding the direction of US monetary policy. Meanwhile, increased gold imports by China have provided an additional demand-side factor for bullion prices.

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