Gold tumbles by record levels around Dhanteras eve

Source :Sify
Author :Finance Desk
Last Updated: Tue, Nov 10th, 2020, 16:16:42hrs
Gold-jeweller-India-Xavier-Galiana-Sifydotcom

Mumbai: The economic conditions around the Dhanteras and Diwali eve have made it easier for gold lovers to invest in a few grams of the yellow metal.  

On Tuesday, price of Gold quoted by jewellers and associations across the country dipped by a margin of Rs 1,735 per ten grams for 24 Karat Gold.  Price of 22 carat or 916 gold declined by Rs 1,575 per ten grams on an average.  

Gold rates in Chennai, Kerala, Mumbai, New Delhi and 60 other prominent cities in India declined on Tuesday.  

The movement in price was owing to a decline in international spot gold on Monday which also took a toll on the MCX Gold futures. The NY Comex also declined by a similar margin to slip from $1,900 levels to $1,860. On Monday evening, the MCX Gold future ending December contracted by nearly 5 percent.   

The decline was recorded after US pharmaceutical major Pfizer announced a Covid vaccine with 90 percent effectiveness. Soon after the news US bond yields improved and so did the US greenback. An improvement in yields, greenback and a boost in the US and European markets resulted in traders' unrest for Gold.  

On Tuesday, the MCX futures gained momentum to quote Rs 50,210 while Silver futures reported a price of Rs 61,618 per kilo. Traders and jewellers remain anxious around a Dhanteras eve which is widely believed to be a great outing in a Covid marred year.  

For 2019, the industry anticipated a 50 percent decline due to increase in import duty and a decline in gold imports back then. Gold price above the psychological 40,000 mark was also reported as a factor for dent in sales. However, Gold sales on Dhanteras 2019 stood at 30 tonnes.

With a few sessions for Dhanteras 2020 (13 Nov), there is excitement among jewellers on the probability of record sales. For customers, a decline means an affordable entry point around the special festive season.

Also Read:  November 2020 SGB open for subscription until Dhanteras

Image: File picture of a jeweller using a weighing scale. Image attributed to Xavier Galiana for AFP.