Tuesday Tumble: Major correction in Gold and Silver markets

Source :Sify
Author :Finance Desk
Last Updated: Tue, Sep 22nd, 2020, 13:47:00hrs
Gold Shop

Mumbai: Be ready to be surprised by what your local jeweller quotes for a gram of Gold or a kilo of Silver this week. The rates are likely to be on the softer side.

Softer Gold rates could be good news for those waiting to buy a few grams of the yellow metal. For those planning a Gold-loan or selling jewellery, the valuation could be a tad lower.

On Tuesday, the price of a gram of Gold saw a major correction. Rates collected by Sify.com from leading jewellery associations, national and international benchmarks reported a decline.

On an average, 24 Carat Gold rate cooled by Rs 1,005 per ten grams. With this, the average India Gold rate stands at Rs 50,765 per ten grams.

Cost of 22 carat jewellery has also cooled - down by Rs 865 to quote Rs 48,715 for 10 grams.

City-specific price-information for Mumbai, Delhi, Chennai, Hyderabad, Kolkata, Kerala and several others are tracked individually. Sify.com tracks gold rates across 60 major Indian cities.

Gold rates have contracted since the start of the week. On Monday spot rates tumbled by 3 percent while the benchmark price on Tuesday saw a major drop. The London Bullion Market Association (LBMA) auction-rate was down by $50 per troy (31.1035 grams) ounce.

Gold on the NY Comex was trading range bound at $1,890 to $ 1,910 per ounce. In India, MCX Gold futures for October quoted an average price of Rs 50,438.

The price drop is attributed to the strength of the US Dollar against a basket of reserve currencies as well as drop in Coronavirus related casualties.

The Silver price too saw a contraction on Tuesday. The MCX Silver Futures displayed a rate of Rs 60,060 per kilo, down by Rs 1,256.

A kilo of Silver is down by 0.03 percent across leading jewellers. The average rate stands at Rs 65,520 per kilo.