Gold slumps by 300, silver prices fall by around 2800

In the previous trade, gold had ended at 48,182 per 10 gram while silver had dipped from 73,219 a kg.
People buy gold at a jewellery store in Pune in this file photo.(Rahul Raut/HT Photo)
People buy gold at a jewellery store in Pune in this file photo.(Rahul Raut/HT Photo)
Published on Feb 02, 2021 06:31 PM IST
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Byhindustantimes.com | Edited by Deepali Sharma, Hindustan Times, New Delhi

Gold and silver prices on Tuesday witnessed another fall. The prices of the bullion dropped on the Multi Commodity Index (MCX) with gold futures falling 0.62 per cent or 300 to 48,094 per 10 gram. On MCX, silver futures dropped 3.88 per cent or 2,856 to 70,810 per kg.

In the previous trade, gold had ended at 48,182 per 10 gram while silver had dipped from 73,219 a kg, as reported by news agency PTI. Gold had traded around 56,000 in August 2020, when the markets were tumbling amid the impact of the coronavirus pandemic on the economy.

"Gold prices declined on lack of progress over the US stimulus package and in absence of fresh triggers. Traders and investors also rushed to book some profit," Tapan Patel, HDFC Securities’ senior analyst (commodities), was quoted as saying by PTI.

The prices of the precious metals fell in the global market too. Gold traded at $1,847 per ounce and silver hit low to $27.50 per ounce from an eight-year peak in the previous session. The fall in the prices of the metals come amidst buoyant global stock markets, a strong dollar that hovered around a seven-week high on the hopes of US President Joe Biden's debate with the Republican senators on the Covid relief package.

Also Read | On Budget day, gold prices at 47,970 per 10 gram; silver at 69,800 per kg

On Monday, gold futures had dipped as low as 1500 to record 47, 918 per 10 grams after the finance minister Nirmala Sitharaman announced the Union Budget 2021-22. The finance minister in the budget announced slashing of the import duty on gold which has been 12.5 per cent since 2019 after it was increased from 10 per cent in July that year.

The custom duty on the gold has been reduced to 7.5 per cent in the budget presented by the finance minister in Parliament. The new move or slumped duty has been welcomed by the bullion industry as the decrease in the duty has been its long-standing demand.

The prices of gold slumped drastically while the BSE benchmark Sensex skyrocketed on the back of this budget.

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Sunday, November 28, 2021