Gold prices set for biggest annual fall in 6 years down Rs. 9000 from all time highs. This is the worst case in 6 years as the gold rates are below the key support level of $1800. The Indian markets have been witnessing a lowering in gold rates today by 0.4% that is Rs. 47,650 per gram. The gold price will close on a flat note as compared to a year-to–date basis.
Other precious metals like silver dipped by 0.8%, platinum dipped by 0.7% and Palladium dipped by 1.2%. This has been the worst kind of decline in ages. Gold prices have been trading for a long time in the narrow range. The decline in the prices have been due to the rising cases of Omicron and trade fluctuations because of it. The US dollar is inversely proportional to the price hike in gold which is currently strong in momentum, causing a decline in gold prices. The trades are also down due to year- end holidays which are causing gold rates to scale down. The prices are in sharp contrast to the market prices in the month of August which was Rs. 56,200. This has been the biggest annual drop in the last 6 years.
In 2021 over the year gold has dipped by over Rs. 4000 and the gold prices are continuously on the decline. The retraction in gold rates is mainly due to the ongoing pandemic and the current positioning of the US dollar. There are several factors affecting the prices of the noble metal. First of all it’s production and mining which is a matter of fact hampered due to the pandemic and also its demand has hit a low because of the slouching economic conditions of the world in general. Though drop in prices may offer the investors a grand opportunity to purchase the yellow metal and trade it. Also due to the uncertainity in business conditions worldwide the investors cannot be assured of quick returns in this trade and hence by profits.
The prices in Delhi for22-carat gold and 24 carat gold are 46,210 and 47,210 respectively. The gold prices in the Mumbai city for 22 carat and 24 carat gold 10 gram are 47,170 and 49,170 respectively.
The prices in Chennai for 22 carat and 24 carat gold respectively are 44,460 and 48,700 respectively. The prices in the city of Kolkata are 46,490 and 49,190 for 22 and 24 carat gold respectively. A few experts suggest that the gold prices could hit the 50,000 mark in a couple weeks. Gold rates are also linked to Reserve Bank instability and the strength of the US dollar. The price of the precious metal is fixed by the Indian Bullion Jewellers Association and MCX is the largest commodity exchange in the country. The 22,000 gold reservein the country is still eagerly awaiting to be potentially tapped into and always the gold rates have plummeted to the skies. Now the situation seems to be dull and also the bank locker rentals have touched the skies.
Gold has a variety of uses apart from the traditional use in jewellery. Gold is a metal used in electronics and is a good conductor of electricity and can easily carry low voltage current. It is free from corrosion and used in calculators, switches, laptops, computers and mobiles for it can transfer the digital data quite fast. Gold has been a safe haven to the investors and traditionally people have been using it in currency and Jewellery.
Gold set for biggest fall in 6 years down Rs. 9000 from all time highs