New Delhi, March 11 The price of silver declined by Rs 4,275 to Rs 2.75 lakh per kilogram in the national capital on Wednesday, while gold gained Rs 900 to Rs 1.65 lakh per 10 grams amid geopolitical tensions in West Asia.
According to the All India Sarafa Association, the white metal plunged by Rs 4,275, or 1.53 per cent, to Rs 2,75,000 per kilogram (inclusive of all taxes) from Tuesday's closing level of Rs 2,79,275 per kg.
However, gold moved higher, with 99.9 per cent purity increasing by Rs 900, or 0.54 per cent, to Rs 1,65,600 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,64,700 per 10 grams in the previous market session.
Analysts said renewed safe-haven demand amid intensifying geopolitical tensions supported gold prices, even as silver came under pressure.
"Gold traded with a positive bias on Wednesday, supported by renewed safe-haven demand amid escalating tensions in the Iran conflict and heightened geopolitical uncertainty," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
He added that the ongoing escalation will continue to act as a tailwind for traditional safe-haven assets like gold.
However, bullion was trading lower in the overseas trade. Spot gold was marginally down at USD 5,189.05 per ounce, and silver slipped USD 1.59, or 1.8 per cent, to USD 86.69 per ounce.
"Gold prices remained under pressure on Wednesday, easing despite elevated geopolitical tensions, as broader macroeconomic factors continued to outweigh safe-haven demand," said Kaveri More, Commodity Analyst at Choice Broking.
She noted that rising market uncertainty, reflected in an uptick in the CBOE Volatility Index, has encouraged investors to maintain higher cash positions rather than aggressively accumulate bullion.
"A global equity sell-off triggered by surging oil prices and persistent Middle East tensions has added volatility across asset classes but failed to provide sustained support to gold," More said.