Gold Prices: The trend of falling gold prices continued on Tuesday also. In Delhi’s bullion market, gold of 24 carat i.e. 99.9 percent purity fell by ₹ 2,700 to ₹ 1,58,200 per 10 grams. This is the fifth consecutive trading day when gold prices have declined. In the last five trading sessions, gold has lost a total of ₹ 8,900 or about 5.3 percent.
The price of gold has now reached its lowest level in almost two weeks. On Monday, 24 carat gold had closed at ₹1,60,900 per 10 grams. On Tuesday, it saw a big fall of ₹ 2,700. Earlier on August 19, gold was trading at around ₹ 1,58,000 per 10 grams. The continuous fall in gold prices can provide relief to those who are preparing to buy jewelery in the coming days.
Gold fell by ₹8,900 in five days
How big the recent fall in the price of gold has been can be gauged from the fact that on August 25, 24 carat gold was ₹ 1,67,100 per 10 grams. After this, its price has decreased by ₹ 8,900 in five trading sessions.
Silver also became cheaper by ₹ 5,000
Along with gold, the price of silver also fell significantly on Tuesday. Silver declined by ₹5,000 to ₹2,40,500 per kg. On Monday its price was ₹2,45,500 per kg.
Why is the price of gold falling?
Crude oil prices have increased due to selling of bullion in the international market and increasing tension between America and Iran. This has increased inflation concerns and the market’s attention to US interest rates has become more important. Apart from this, the possibility of a tough stance on interest rates by the US Federal Reserve has also increased the pressure on gold. Generally, investors may stay away from gold when expectations of increase in interest rates increase.
How will the price be in future?
In the coming days, investors will keep an eye on America’s economic data. The US non-farm payrolls report is due on Friday after manufacturing and service activity data. These data can determine the direction of the market regarding interest rates, which can also affect the price of gold.