The drop in gold and silver prices continued this week too in the Indian markets. Developments in Covid-19 vaccine have reignited the interest of investors in risk assets slashing the prices of precious metals. Gold prices have plummeted about Rs 4,000 per 10 gram while silver settled at Rs 6,000 per kg in about three weeks.
On Friday, hopes around quick vaccine-fuelled economic recovery and a smooth White House transition slumped global gold prices as much as 2% to $1,773, breaking below the key $1,800 support level, to a near five-month trough. While the global stock index pierced through record highs for the third session this week.
Gold has lost around 4.7 per cent this week which is the most since March 13.
Investors are also looking forward to calmer trade and business under the Joe Biden administration in the US along with rapid progress in developing the Covid-19 vaccine.
Analysts also believe that ultra-low interest rates and prospects of infusing more stimulus in the economy can support gold prices. Central banks all around the world have slashed interest rates in response to pandemic hit economies.
A greater amount of stimulus in the economy has also sparked off concerns around higher inflation, which also helped gold to gain over 17 per cent till now this year.
{{/usCountry}}A greater amount of stimulus in the economy has also sparked off concerns around higher inflation, which also helped gold to gain over 17 per cent till now this year.
{{/usCountry}}(With agency inputs)