Gold and Silver rates crash in India, international spot rate below $1600 levels

Source : Sify
Author : Finance Desk
Last Updated: Fri, Mar 13th, 2020, 17:56:20hrs
Gold and Silver rates crash in India, international spot rate below $1600 levels

Mumbai/New-Delhi: Gold rates across major jewelry stores on Friday have cooled by a huge margin of 3 to 4 percent implying that the time may be sweet for average buyers to invest in the Yellow metal. Buying bullion has turned cheaper by a margin of Rs 90-150 per gram according to data sourced from major trade associations by Sify.com.  

For retail buyers, ten grams of 24 Karat Gold was quoting a price of Rs 42,098  in Chennai while in New Delhi the rates were quoted at Rs 41,990. For more real-time rates, follow our Gold rates page. 

The poor man's metal - Silver witnessed a slump with retail rates hovering around Rs 45-46 per gram.  

On MCX, Gold futures expiring for Apr'3 crashed to a low of 41,443 and a peak of 42,070 in intra-day at the time of publishing this story. The average price on MCX is reported at 41,750.23.  

Rates cooled in India after benchmark rates fixed by the London Bullion Market Assocation were below the $1600 mark for the first time in as many as 23 days. AM Rates for Thursday were fixed at $1570.70 per troy ounce, lower than LBMA auction price of $1609.50 per (highest in seven years) on Feb'19, 2020.  

For buyers, the good news is that rates could have been much lower had it not been for the Rupee slumping to a record low against the Dollar. In morning session on Friday, Rupee traded to a historic low of 74.577. A stronger Dollar makes buying Gold expensive. In live trade, the Rupee recovered by 50 paise to 74.04 levels. The Rupee's second historic low was 74.48 during October'18. However, a look at the futures market implies of a nearing bloodbath for currency markets.  

Corona induced fears rattled financial markets even as investors made a dash for Yellow metal considering Gold peaks during such crisis. Also, Gold offers better bang for the buck and hence exhibits safe-haven attributes. However, the trends on international spot markets narrated a different tale. US COMEX futures quoted a price of $1560.14 per troy ounce at the start on Friday even as Oil tanked to $30.96 per barrel. A see-saw trend was spotted on Gold Futures for April delivery. Gold futures hit highs of $1,584 levels before nose-diving to $1,560.

With corporate earnings getting curtailed and concerns on growth erosion, investors certainly are plucking their monies away from equities. The impact has been visible in Indian domestic indices. Indian equity markets lost 11 lakh crores in trading session on Thursday. The session on Friday appeared a wash-out with pre-trade throwing the Sensex away at 3,000 points lower. After a 45 minute halt, the Sensex momentum is in a see-saw session. 

Disclaimer: The story has been updated with latest PM rates.