Gold Prices Plunge To 5-Month Low: 5 Things To Know
Gold prices on Wednesday tumbled by Rs. 250 to trade at over five-month low of Rs. 30,800 per 10 grams at the bullion market amid weakening global trend and considerable fall in demand from local jewellers, reported news agency Press Trust of India (PTI). Silver followed suit and dropped by Rs. 620 to Rs. 39,200 per kg on poor off take by industrial units and coin makers. Traders said sentiment was downbeat as gold prices slipped to their lowest in a year in global markets, as the dollar firmed after Federal Reserve Chairman Jerome Powell’s US economic outlook reinforced views that the central bank is on track to steadily hike interest rates, eroding appeal of the precious metal.
Here are key things to know about gold and silver prices today:
1. Globally, spot gold was largely unchanged at $1,227.78 an ounce in early day trade. On Tuesday, it fell 1 per cent and hit its lowest since last July at $1,225.58 an ounce, reported news agency Reuters. US gold futures for August delivery were little changed at $1,227.80 an ounce.
Besides, muted demand from local jewellers and retailers at domestic spot markets too weighed on prices.
2. In Delhi, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs. 250 each to Rs. 30,800 and Rs. 30,650 per 10 grams, respectively, a level last seen on February 8, 2018. The precious metal had lost Rs. 100 yesterday. Sovereign, however, remained unaltered at Rs. 24,700 per piece of eight grams.
3. Analysts expect the price of gold to dip to Rs. 29,500 per 10 grams this week.
“As far as mid-term trend in domestic gold prices is concerned, festive demand will start not before September. We may see a jump in physical demand for advance purchasing of jewellery in August since wedding season will kick-start post Diwali in November,” says Gaurav Katariya, research head, commodities, Arihant Securities.
Also Read:Top Five Factors That May Guide Gold Prices In Near Term
4. Following gold, silver ready dropped by Rs. 620 to Rs. 39,200 per kg and weekly-based delivery by Rs. 690 to Rs. 38,290 per kg.
5. Silver coins, on the other side, were unaltered at Rs. 74,000 for buying and Rs. 75,000 for selling of 100 pieces in scattered deals.
