Retreat from high prices in gold and silver

Mumbai, Ta. 23 June 2020, Tuesday

The local gold and silver market saw a retreat from yesterday's high prices. Gold prices rallied yesterday after heavy private turmoil, signaling a lucrative sell-off in gold and easing tensions between China and India. Apart from this, the fall in the value of the dollar against the rupee has also led to a fall in prices.

The GST-free price of 10.50 per ten grams of gold, which had officially closed at Rs 5 yesterday, had gone up to Rs 200 in private. Prices booked at higher prices were modestly lower at Rs 5 from yesterday's official close. Prices were quoted three per cent higher with GST. Gold also closed at Rs 4,150, down slightly from Rs 2,150.

Yesterday evening, the price of gold in private was seen at Rs 5.50. Silver is also behind gold. The price of one kg excluding GST was closing at Rs 20 with Rs 2. Silver was lower at Rs 5 today. Yesterday, silver was reportedly traded at Rs 500 in private.

However it has retreated from a high headline today. In the world market, gold fell from 15 an ounce to ૭૫૮ 16 today. Silver also fell below ૮ 15 an ounce to 17.8 an ounce. Platinum fell from ૮૩૬ 6 to ૮૩ 21, while palladium rose by 120.50 an ounce to ૯૩૬ 19.15.

There were conflicting statements from the US on the issue of the trade agreement between the US and China. The dollar had lost 7 paise against the rupee to close at 8.5 against the rupee on signs of a border dispute between India and China and a surge in stock markets.

The pound gained 15 paise to Rs 2.7 while the euro gained 20 paise to close at Rs 4.5. New York crude was trading at ૪ 71.50 a barrel, while Brent was trading at 4.50. The number of rigs in the United States dropped to 16, an 11-year low. The number of rigs in Canada has also reached record lows.