Silver slides Rs 3,400 to Rs 2.68 lakh/kg, gold stays flat on strong dollar
New Delhi (PTI): Silver prices declined by Rs 3,400 to Rs 2.68 lakh per kilogram, and gold traded almost flat at Rs 1,64,300 per 10 grams in the national capital on Monday as a firm US dollar dampened the precious metals' demand amid volatile global markets.
According to the All India Sarafa Association, the white metal extended its losses for the third straight day by plunging Rs 3,400, or nearly 1.3 per cent, to Rs 2,68,300 per kg (inclusive of all taxes) from Friday's closing level of Rs 2,71,700 per kg.
"Silver extended last week's decline as a sharp rise in crude oil prices raised concerns that inflationary pressures could intensify again," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
Higher energy prices tend to feed into broader inflation expectations, which may delay the pace of interest rate cuts by the Federal Reserve. This scenario supported the US dollar and Treasury yields, which in turn weighed on precious metals, he added.
Meanwhile, gold of 99.9 per cent purity rose marginally by Rs 200 to Rs 1,64,300 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,64,100 per 10 grams in the previous market session, as per the Association.
Globally, spot gold fell USD 65.23, or 1.26 per cent, to trade at USD 5,105.89 per ounce, while silver was also trading 0.53 per cent lower at USD 83.92 per ounce.
"Gold is trading lower at USD 5,097 per ounce level as crude oil prices surged nearly 30 per cent overnight on Middle East supply concerns," Praveen Singh, Head of commodities and currencies at Mirae Asset ShareKhan, said.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said that forced liquidations to meet margin calls during the broader market sell-off have also pressured bullion prices since tensions escalated sharply last week.
Investors will now monitor key US macroeconomic indicators such as CPI, Core PCE Price Index, Prelim GDP, and JOLTS job openings, for further cues on the Fed's policy trajectory, while geopolitical developments in West Asia are expected to continue influencing market sentiment, she added.
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Siddaramaiah seeks Centre's urgent intervention over commercial LPG cylinder shortage
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Tuesday sought the Centre's urgent intervention to ensure supply of adequate commercial LPG cyclinders to hotels and restaurants in Bengaluru.
He said hotels, restaurants and catering establishments in the city would be forced to suspend operations if supplies are not restored, affecting a large number of students and working professionals who depend on them for regular meals.
In his letter to Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, he also requested him to issue appropriate directions to the oil marketing companies to address the current supply constraints that would help ease the situation.
Referring to the March 9 order issued by the Ministry of Petroleum and Natural Gas prioritising LPG supply for domestic consumers, Siddaramaiah said while the intention behind the order to ensure uninterrupted LPG supply to households across the country is well understood and appreciated, its implementation appears to have led to an unintended shortage of commercial LPG in Bengaluru.
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He cited that several hotels and restaurant associations in the city have reported that they are unable to procure commercial LPG cylinders, and many establishments are expressing concern that they may have to temporarily shut operations if supplies are not restored soon.
Bengaluru has a large ecosystem of small restaurants, mess facilities, and catering units that serve lakhs of people every day.
According to him, as per the discussions held with the oil marketing companies, the state's commercial LPG demand has traditionally been supported by supplies from the three OMCs-IOCL (around 500-550 MT per day), HPCL (around 300 MT per day) and BPCL (around 230 MT per day) and the sudden disruption of this supply is now severely affecting hotels, catering establishments and other commercial users in Bengaluru.
Any disruption to their functioning will have a direct impact on daily life in the city, he said.
"This issue also affects a large number of students and working professionals who live away from their homes and depend on hotels and mess facilities for regular meals. In addition, Choultries (wedding halls), hostels, and event venues that rely on commercial LPG for food preparation are also facing uncertainty, particularly with scheduled social and community events," the chief minister said in the letter.
Given the scale of dependence on commercial LPG in a metropolitan city like Bengaluru, Siddaramaiah sought the union minister's intervention to ensure that adequate commercial LPG supply is made available to hotels, restaurants, choultries, community halls and any other pure commercial establishments.
"Appropriate directions to the oil marketing companies to address the current supply constraints would help ease the situation. A timely resolution will help ensure that businesses continue to operate smoothly while also avoiding inconvenience to thousands of people who rely on these services on a daily basis," he added.
