After months of rally, gold and silver have witnessed a downside. The metals have witnessed the biggest fall this week after a good inning. This fall will give some room for gold buyers.
This week gold prices dropped by around Rs 2,000 per gram while silver slumped by Rs 9,000 per kg.
According to IBJA rates (which excludes taxes), on Monday (September 21), the rate of 24 karat gold opened at Rs 51,612 per 10 gram. On September 24, the price of gold was as low as Rs 49,810 per 10 gram. Meanwhile, on Friday (September 24), the gold prices closed at Rs 49,846 per 10 gram.
In the case of silver, according to IBJA, it opened at Rs 64, 141 per kg on Monday. On Thursday (September 24), the price of silver tumbled by Rs 56, 250 on opening. However, on Friday, silver closed at Rs 57,477 per kg.
On MCX, gold futures fell by Rs 238 on Friday. It now stands at Rs 49,666 per 10 gram. Meanwhile, silver dropped to Rs 59, 018 per kg.
It is estimated that the prices can drop slightly further. Analysts attribute this slump to the revival of US currency which led investors to shift their attention from the yellow metal — considered a safe haven for investors at times of crisis such as these. The hope around the US stimulus has improved the dollar position.
Globally, gold gained at USD 1,873 per ounce, while silver was flat at USD 23.10 per ounce.
