Gold and silver boom breaks as a result of gaps in the world market

(By commercial representative) Mumbai, Ta. Thursday, June 25, 2020

The gap in world markets has led to a backlash in gold and silver prices at home. Silver also declined by Rs 1,000. Silver declined following the IMF's forecast that global economic growth would remain negative. Crude oil prices have also been on a downward trend, signaling an industrial downturn. The rupee strengthened against various currencies in the domestic currency market.

At the local level, the price of 10 grams of gold, which was Rs 2.50 yesterday, was Rs 70 excluding GST. Gold was closing at Rs 315, up from Rs 4.50. Prices with GST were quoted three per cent higher.

The price of silver, which was Rs 305 per kg yesterday, fell by Rs 1,000 to close at Rs 4. Late in the evening private prices were soft. Abroad there were gaps in every precious metal. Gold, which was trading at ૭૭૭ 18.5 an ounce yesterday, fell to ૭૫૬ 16.50 late today.

Silver was trading at ૭ 16.8 an ounce, up from 12.5 an ounce. Platinum, another precious metal, fell from ૮૨ 41.50 to ૮ 203.50, while palladium fell sharply from ૯૩૪ 16.5 an ounce to ૯ 1,300 an ounce late in the day, hitting 16.50.

The IMF's estimate of a 6.50 per cent decline in global GDP is signaling an industrial downturn, which is expected to have an impact on industrial demand for precious metals. The downturn in crude oil prices has weighed on expectations that demand for crude oil will also decline as a result of the economic downturn.

New York's main contract, light sweet crude for delivery in New York, fell from ૫૨ 7.5 a barrel to ૨૮ 2.3 a barrel and Brent crude traded at 6.5 a barrel. According to the US government agency, crude oil stocks have risen by 1.5 million barrels.

The rupee strengthened against major currencies in the domestic currency market. The dollar was lower at Rs 4.5 and higher at Rs 6.5 and finally closed at Rs 4.5.