Diwali 2021: Gold, silver prices fall day before festival

The prices of the two metals dropped by 0.23 per cent and 0.3 per cent, respectively, at around 9:15am on Wednesday.
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Published on Nov 03, 2021 12:25 PM IST
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Byhindustantimes.com, New Delhi

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. 

 

 

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Monday, November 29, 2021