Mumbai: Gold prices plunge in nation’s capital, largely due to tumble in the international dollar index It has also ripples in markets from Delhi to New York. Experts believe that fluctuations in gold and silver prices may continue in the coming weeks and gold prices in Delhi may also reach ₹77,000 per 10 grammes, till the end of December. We take a detailed look at how domestic and international prices have been affected.
At the bullion market in the national capital, the price of gold slipped by ₹450 on Monday, to come down to ₹79,550 per 10 grammes, according to information from the All India Sarafa Association. Friday was gold which closed at ₹80,000 per 10 grammes. The price of 99.5% pure gold also came down by ₹450 to ₹79,150 per 10 grammes as against ₹79,600 per 10 grammes in the previous session. Similar to silver, prices of silver are also down by ₹600 to ₹94,000 per kilogramme from previous trading session of ₹94,600 per kilogramme.
Gold futures prices fell in New York’s COMEX market by $31 an ounce to $2,664 an ounce. Current trading Gold spot prices also fell by $28 per ounce to $2,656.49 per ounce. Silver futures were down close to 1 percent at $31.14 an ounce. Silver spot prices dropped by 0.84 percent, to $31.05 per ounce, meanwhile.
The drop in gold prices has been fueled, said Jatin Trivedi, LKP Securities Vice President Research (Commodities and Currency), by a fall in COMEX where rates are lower than Friday’s closing $2,685. This trend, he said, is rooted in a stronger dollar index that is depressing the price of gold. His further added that Donald Trumpelection victory has seen the rise of US bond following which it gives a corrective push to the bullion prices.
The sharp fall in gold and silver prices both in India as well as on the International Market reflects the volatility in the International Market. When the U.S. dollar index gets stronger and U.S. bond prices go up, investors may continue to be volatile for precious metals. Consumers and investors will be keeping an eye on market developments with predictions indicating further price movement.
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