There is bad news for investors investing in gold. In the domestic and global markets, the price of gold is going down this month. According to Kotak Securities, the price of gold in the global market has fallen by almost three per cent, its worst performance since 2011. At the same time, the price of gold and silver in the futures market also fell for the fifth consecutive day on Thursday. The gold price has dropped by about Rs 7,500 from the highest level of 56,200 per ten grams in August 2020.
Gold futures on MCX fell by 0.33 per cent to Rs 48,702 per 10 grams. At the same time, the price of silver fell by one per cent to Rs 65,866 per kg. The strengthening of the US dollar in global markets on Thursday led to the fall in gold rates. Gold spot slipped 0.3 percent to $ 1,839.21 an ounce. The dollar index rose 0.12 percent to 90.745. Significantly, the US Federal Reserve has kept the interest rate close to zero and has maintained monthly bond purchases. Other precious metals also remained under pressure. Silver fell 0.2 percent to $ 25.18 an ounce while platinum fell 0.2 percent to $ 1,063.76.
Gold ETF also reduced trend
Gold ETFs depend on gold prices. The price of gold also decreases with the increase in price. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange traded fund or gold ETF, fell 0.3 per cent to 1,169.17 tonnes on Wednesday. The flow of ETFs reflects weak investor interest in gold.
There was a 25 percent rise in 2020.
Fiscal measures by central banks and governments around the world to reduce the effects of the corona virus had raised gold prices by more than 25 per cent last year, while silver had risen nearly 50 per cent. Gold is considered to protect against inflation and currency depreciation.
Also Read: Gold Price Today: Gold slipped today, silver fell by just Rs 146, see new rate quickly
Gold falls by Rs 109 and silver by Rs 146
On Thursday, gold fell by Rs 109 to Rs 48,183 per 10 grams in Delhi Bullion Market. Gold had closed at Rs 48,292 per 10 grams in the previous trading session. Silver also fell by Rs 146 to Rs 65,031 per kg. The previous closing price was Rs 65,177 per kg. Experts said that the price of gold has fallen in the global market due to the strong dollar. It has also impacted the domestic market.
India’s gold demand plummeted 35 percent
The country’s gold demand declined by more than 35 percent to 446.4 tonnes in the last year ie 2020. This information is given in a report of the World Gold Council (WGC). On the WGC’s 2020 demand for gold, the report noted that the demand for gold declined amid the enforced lockdown due to the corona virus and the price of precious metals reaching an all-time high. According to WGC data, the demand for gold declined by 14 percent in value last year to Rs 1,88,280 crore. In 2019, gold demand by value was Rs 2,17,770 crore.
