On Wednesday, a day before Diwali, prices of gold witnessed a huge drop, as the metal, which has been priced in the range of ₹47,000 over the last few weeks, fell to ₹47,514 per 10 grams on the Multi-Commodity Exchange (MCX), at 9:15am. This is a fall of around 23 per cent from the closing rate on Tuesday, when the nation observed Dhanteras, on day 1 of the five-day Diwali festivities.
Similarly, the cost of silver, too, went down, dropping by 0.03 per cent to ₹63,207.
On buying gold on the occasion of Diwali, doing which has been an integral part of the festival of lights over the years, analyst NS Ramaswamy suggested that the metal should be purchased at a range of ₹47,500- ₹48,000. “Its prices are expected to hit ₹52,000 by the year-end. Once the interest rates begin to rise, dollar would have a greater appeal. Hence, gold would stay in the range of ₹50,000-52,000,” News 18 quoted Ramaswamy, head of commodities, Vedanta Securities, said.
Meanwhile, gold prices edged lower in international market as well, with spot gold sliding 0.2 per cent to $1784.04 per ounce by 1:38 GMT (7:38 am in India) on November 3, while US gold futures fell 0.2 per cent to $1785.30, as per Reuters. This comes ahead of the US Federal Reserve Policy meeting scheduled for Wednesday (local time), with the Fed likely to announce its stimulus tapering timeline.
“International gold prices have started weaker this morning in Asian trade as investors turned cautious ahead of the Fed meeting outcome,” Sriram Iyer, senior research analyst at Reliance Securities, said.
{{/usCountry}}“International gold prices have started weaker this morning in Asian trade as investors turned cautious ahead of the Fed meeting outcome,” Sriram Iyer, senior research analyst at Reliance Securities, said.
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