Gold price plunges to 8-month low

Ahmedabad: Gold price in Ahmedabad market plunged to an eight-month low at Rs 48,500 per 10 grams on Wednesday. The price of the yellow metal price declined by Rs 800 in a single day against Tuesday’s Rs 49,300 per 10 grams.
According to bullion traders, the price dipped below Rs 49,000-mark after almost eight months. The last time prices were in the range of Rs 48,000-Rs 49,000 per 10 grams was soon after the easing of the lockdown.

According to analysts, several factors have been responsible for declining yellow metal prices. “The reduction in basic customs duty cut in the Union Budget announcement, high energy prices, record-high returns on equity and even better yields from the treasury – all amidst expectations of more stimulus in the US have caused gold price to increase,” said a city-based analyst.
Reduction in gold prices has infused much-needed optimism amongst jewellers who are expecting spike in sale.

“With the ongoing wedding season, slated to last at least a month, jewellery sales may get a good boost in the days to come. Pent-up demand for ornaments may see an increase. Moreover, individuals who had planned gold jewellery purchases in the past but were compelled to defer it due to income shortfall or high price of gold have once again begun making purchases,” said Jigar Soni, president, Jewellers’ Association of Ahmedabad (JAA).
“This indicates a drastic improvement in the consumer sentiment. As a result, we expect better sale in the times to come,” said Soni.
Meanwhile, silver price plunged below the Rs 70,000-mark on Wednesday to touch Rs 69,000 per kg – down by Rs 1,300 per kg on Tuesday.

Courtesy: TOI

Image Courtesy: Zee News