Gold prices fell sharply from August’s high of Rs 56,200. It is down 18 per cent, to about Rs 10,000. With this, the gold futures have now reached an eight-month low. Today, futures on the MSX rose 0.22 per cent to Rs 46,997 per decade, while silver futures declined 0.4 per cent to Rs 68,989 per kg.
Prices are so high in the global market
Gold prices were flat in the world market today. Spot gold was flat at 7 1,770.15 an ounce and so far it has fallen 0.6 percent this week. US gold futures fell 0.5 percent to 7 1,767.10 per dollar. The dollar index rose 0.01 percent to 90.188 today. Among other precious metals, silver rose 0.3 percent to $ 29.49 an ounce, palladium was steady at ২ 2,400.43 and platinum was up 0.1 percent at ২ 1,227.93.
Gold rose 25 percent last year
Financial measures by central banks and governments around the world to reduce the impact of coronaviruses have pushed gold prices up more than 25 percent last year, while silver has risen nearly 50 percent. Gold is seen as a hedge against inflation and currency devaluation. Gold in India fell below its August high of Rs 56,200 on August 10.
The main reason for price fluctuations
Fluctuations in the US dollar, chronovirus growth, and related restrictions, mixed economic data from large economies, additional stimulus measures, and Brexit uncertainty have seen gold and silver prices fluctuate. The flow of ETFs reflects weak investor interest in gold. India’s gold demand fell by 35.34 per cent to 446.4 tonnes last year from 9,090.4 tonnes in 2012.