Looks like gold buyers have a very good reason to buy gold. In less than 30 days, the price of gold has dropped by Rs 2,927 per 10 gram for 24 karat gold. As on Friday (March 12), gold is priced at Rs 44,601 per 10 gram excluding taxes, as per India Bullion and Jewellers Association Ltd. (IBJA). Meanwhile, on February 12, gold was priced at Rs 47,528 excluding taxes.
This sudden drop in gold prices is attributed to rising US bond yields, the roll-out of COVID-19 vaccine and expectations that economic recovery would be faster than expected.
The industry expects the demand of gold to pick up in India due to the slump in gold prices. Meanwhile, 22 karat gold was priced at Rs 44,154 per 10 gram on Friday. Meanwhile on MCX, gold futures closed at Rs 44, 785 on Friday.
Over the last one year, gold prices spiked from Rs 44,000 level to touch Rs 56,000-mark. However, now gold has reached its almost a year low. This means gold which gained almost Rs 12,000 over the last one year and now has shed that gain. On March 13, 2020, the price of 24 karat gold was at Rs 45,954 per 10 gram and 22 karat gold was priced at Rs 45, 770.
Meanwhile, the price of silver was down by Rs 1,925 per kg in a month’s time as well. On Friday, March 12, 2021, silver was priced at Rs 66,480, a rise of Rs 23,490 per kg from Rs 42, 990 on March 13, 2020.
During the COVID-19 pandemic, prices of gold and silver soared. While gold has reached its pre-COVID-19 mark, silver is far from those levels.