Ahmedabad: Gold price falls further to Rs 42,400; no rise in demand

AHMEDABAD: Continuing its plunge, gold prices continued to fall for the fourth consecutive day on Saturday. Yellow metal price stood at Rs 42,400 per 10 gram in the Ahmedabad market on Saturday, falling by Rs 700 against Friday’s Rs 43,100 per 10 gram. According to analysts, increased selling of gold coupled with profit-booking caused the decline in gold prices.
“With the recent crash of the stock market, investors have sold off a lot of gold to compensate for losses. This coupled with profit-booking in gold has caused gold price in the local market to decline further,” said Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA).
A week ago, gold price touched the record high of Rs 46,100 per 10 gram in Ahmedabad market. Gold prices have shown a rise in the international market due to fears of slowdown in global trade due to coronavirus outbreak.
Even though gold prices have declined, the demand for yellow metal has ceased to increase, leaving jewellers and stockists, worried. “There is a lot of fluctuation in gold prices, due to which both consumers and investors are in wait and watch mode, because of which demand has failed to pick up,” said a city-based jeweller without willing to be named.