Gold price falls, silver plunges sharply on bullion market
The price of gold had jumped by ₹1,182 on Tuesday following rally in international prices of the yellow metal.
The prices of gold and silver dropped on Wednesday, ending a string of hikes.
While the price of gold dropped by 0.83 per cent, silver plunged sharply on the bullion market. It shed ₹2,863 and was trading at ₹67,135 per kilogram.
Gold, on the other hand, was trading at ₹53,424 per 10 gram. It had closed at ₹54,856 per 10 gram on Tuesday.
The price of gold had jumped by ₹1,182 on Tuesday following rally in international prices of the yellow metal. Silver was also in heavy demand as it zoomed ₹1,587 to ₹72,547 per kg, from ₹70,960 per kg in the previous trade.
In the international market, gold was quoting higher at US $2,005 per ounce and silver also depicted strength as it traded higher at US $28.15 per ounce.
On Wednesday, gold fell below $2,000 an ounce in the international market as the dollar steadied, with investors awaiting minutes from the US Federal Reserve’s last policy meeting.
Spot gold was down 0.7% at $1,987.36 per ounce.
The dollar index edged 0.1% higher against its rivals after hitting a more than two-year low in the last session. A stronger greenback makes gold expensive for holders of other currencies.
The dollar, also considered a safe-haven, has lost its appeal recently after the US central bank rolled out a wave of fiscal measures and cut interest rates to near zero to mitigate economic damage caused by the coronavirus outbreak.
Meanwhile, Asian shares climbed to a seven-month peak on Wednesday tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.
