Gold Prices Plummet by Rs 4000 in Two Days, Silver Prices Stable
A significant drop in gold prices presents a golden opportunity for buyers and investors. Over the past two days, the price of gold has decreased by approximately Rs 4000, driven by reduced demand and a cut in custom duty.
There is a golden opportunity for those who want to buy or invest in gold. In the last two days, the precious yellow metal has become cheaper by about Rs 4000. Meanwhile, the price of silver has remained unchanged. According to the information provided by the All India Sarafa Association, the price of gold fell on Wednesday due to decreased demand and the government’s announcement of a reduction in customs duty.
Gold Cheaper by Rs 650 in Delhi
The price of gold in Delhi’s bullion market fell by about Rs 650 to Rs 71,650 per 10 grams. Earlier, on Tuesday, the day of the budget, gold became cheaper by about Rs 3350. Its price has decreased by about Rs 4000 over the span of two days. On Tuesday, gold closed at Rs 72,300 per 10 grams with a fall of Rs 3,350. However, the price of silver remained unchanged at Rs 87,500 per kg. The price of gold of 99.9 percent and 99.5 percent purity fell by Rs 650 each to Rs 71,650 per 10 grams and Rs 71,300 per 10 grams, respectively.
Impact of Custom Duty Reduction
Manav Modi, Senior Commodity-Research Analyst at Motilal Oswal Financial Services Ltd, explained that the recent session saw a fall in the prices of gold and silver on the domestic front, driven by the Finance Minister’s announcement of a cut in import duty, which surprised the market. He noted that gold prices rose in the foreign market, creating a disparity with domestic prices. The domestic market might take some time to fully absorb the impact of the duty cut and align with COMEX.
Gold Prices in Futures Market
On Wednesday, the price of gold in futures trading rose by Rs 363 to Rs 68,873 per 10 grams as speculators bought fresh deals amid strong spot demand. On the Multi Commodity Exchange (MCX), the price of the contract for supply in the month of August increased by Rs 363, or 0.53 percent, to Rs 68,873 per 10 grams, with 10,851 lots traded. Globally, gold rose by 0.41 percent to $2,465.20 an ounce in New York. Market analysts attributed the rise in gold futures prices to fresh buying by traders.
Silver Futures Prices Rise
On Wednesday, the price of silver in futures trading rose by Rs 431 to Rs 85,350 per kg as traders increased the size of their deals amid strong spot demand. The price of silver contract for delivery in September on MCX rose by Rs 431, or 0.51 percent, to Rs 85,350 per kg, with 26,508 lots traded. Globally, the price of silver in New York rose by 0.39 percent to $29.45 per ounce.
The recent changes in gold and silver prices present a significant opportunity for investors and buyers. With the reduction in customs duty and the subsequent price drop, now might be the ideal time to invest in gold. Meanwhile, the stability in silver prices ensures that it remains a solid investment choice.