Gold prices plunged throughout the week and the precious metal recorded a huge fall in prices witnessing an eight-month low on Friday, which experts say has come on the back of the rise in the US Treasury yield and a stronger dollar, optimism over a larger economic stimulus package and the Covid-19 vaccination drive.
Gold prices hit an eight-month low on Friday as prices in India followed global cues. The prices of the precious metal declined marginally by ₹19 to ₹46,826 per 10 gram on Monday. Silver on the other hand witnessed a surge of ₹646 to ₹69,072 per kg from ₹68,426 per kg on the first day of the week.
Silver prices continued the rise on Tuesday as well when the metal gained ₹95 to ₹69,530 per kg despite prices remaining flat in the international market. Gold gained marginally in the international market on Tuesday but Indian markets saw the precious metal prices drop ₹9 to ₹46,900 per 10 gram.
Both precious metals witnessed midweek instability as gold prices plunged by ₹717 to ₹46,102 per 10 gram on Wednesday as global gold prices continued to drop. Silver prices fell by ₹1,274 to ₹68,239 per kg.
The prices of gold continued their fall on Thursday as well as prices fell by ₹320 to ₹45,867 per 10 grams. Silver prices rose slightly from ₹28 to ₹68,283 per kg. Gold prices further continued to plummet on Friday as the precious metal prices tanked by ₹239 to ₹45,568 per 10 gram. Silver prices fell again on Friday from ₹723 to ₹67,370 per kg.
Gold buying saw a surge in India due to the fall in prices. Chanda Venkatesh, managing director of CapsGold, told Reuters that price correction has led to a buying surge. “Sales are robust. People are buying coins, bars and jewellery because of price correction,” Venkatesh was quoted as saying by news agency Reuters.