fall in gold prices
A big fall in the prices of gold and silver has been seen in the country’s capital Delhi. According to data, gold in the country’s capital Delhi has fallen below Rs 1.25 lakh. On the other hand, silver prices have fallen below Rs 1.50 lakh. Experts believe that the main reason for the decline in gold and silver prices is the reduction in trade tension between America and China. Due to which the demand for safe haven has reduced. On the other hand, experts believe that a further decline of 5 to 10 percent may be seen in the prices of gold in the coming days. This means that gold prices in Delhi may fall below Rs 1.10 lakh. Let us also tell you what is the price of gold and silver in the country’s capital Delhi?
Gold and silver crash in Delhi
Gold prices in the national capital fell by Rs 4,100 to Rs 1,21,800 per 10 grams on Tuesday due to reduced demand for safe haven investments due to easing of US-China trade tensions and it also fell below $ 4,000 an ounce in global markets. According to All India Bullion Association, on Monday this precious metal closed at Rs 1,25,900 per 10 grams. In the local bullion market, gold of 99.5 percent purity also fell by Rs 4,100 to Rs 1,21,200 per 10 grams (including all taxes), while its previous closing price was Rs 1,25,300 per 10 grams.
According to experts, gold fell further on Tuesday and due to decreasing demand for safe investments, the fall further increased. Selling intensified and the prices of the yellow metal fell to a three-week low. On Tuesday, silver prices also registered a huge fall of Rs 6,250 and it came down to Rs 1,45,000 per kg (including all taxes). According to the association, on Monday this white metal closed at Rs 1,51,250 per kg.
Big fall in gold and silver in foreign markets
In international markets, spot gold remained under pressure and fell by $ 94.36 or 2.37 per cent to $ 3,887.03 an ounce. In the previous session, it had closed below the $4,000 level with a decline of $132.02 or 3.21 per cent. Spot silver also saw a huge fall, falling 2.85 percent to a low of $ 45.56 an ounce. HDFC Securities Senior Analyst (Commodities) Saumil Gandhi said the fall was due to technical selling following intra-day failure to sustain levels above the psychological level of $4,000.
Gold and silver also fell on MCX
A big fall is being seen in the prices of gold on the country’s futures market Multi Commodity Exchange. During the trading session, gold prices fell by Rs 3,329 to Rs 1,17,628 per ten grams. Whereas at 6.20 pm, gold is trading at Rs 1,18,249 per ten grams with a fall of Rs 2,708. By the way, gold has become cheaper by Rs 14,666 per ten grams from its life time high. On October 17, gold had reached a life time high of Rs 1,32,294.
On the other hand, a big decline has also been seen on the country’s futures market Multi Commodity Exchange. During the trading session, a fall of Rs 4,061 was seen in the price of silver and the price came down from Rs 1.40 lakh to Rs 1,39,306. The special thing is that on October 17, the price of silver had reached a life time high of Rs 1,70,415. Since then, silver prices have seen a fall of Rs 31,109 per kg. At 6.25 pm, the price of silver is trading at Rs 1,41,590 with a fall of Rs 1,777.
What are the experts saying?
Praveen Singh, Head of Commodities and Currency at Mirae Asset Sharekhan, said that spot gold remains under pressure due to reduced demand for safe haven investments due to optimism over the US-China trade deal. Meanwhile, US President Donald Trump and his Chinese counterpart Xi Jinping are about to finalize the framework of the trade agreement, after which further meetings are likely to take place. Trump’s expression of confidence in the trade deal with Japan also affected bullion prices.
Praveen Singh said that withdrawals from Gold ETFs remained low for the third consecutive day on October 24, which put further pressure on prices. He said investors are awaiting the policy results of the US Federal Open Market Committee on Wednesday, in which the central bank is expected to cut interest rates by 25 basis points. Saumil Gandhi of HDFC Securities said that we believe the decline in gold will continue, with a possibility of a decline of 5-10 per cent, as large investors can book profits after the prices have increased by more than 50 per cent this year.