Further decline in gold and silver while strength prevailing in the dollar

(By Commercial Representative) Mumbai, Ta. 20 August 2020, Thursday

Minutes after the US Federal Reserve meeting, the world market saw a significant drop in gold and silver prices. The local currency market saw mixed flows. The rupee weakened against the dollar while other currencies strengthened. The decline in crude oil signaled a further softening of the US economy. Unemployment claims in the United States have risen by another 1.1 million.

In the domestic Mumbai market, the gold price of 7.50 per ten grams, excluding GST, opened lower than yesterday's close and remained above Rs 6 today, finally closing at Rs 213. Yesterday, the rupee was seen off. At 7.50, yesterday's price was Rs 4,160, Rs 219 opened and closed at Rs 5,110. Prices with GST were quoted three per cent higher.

Silver. 2 with a price of Rs 205 per kg today was up to Rs 5 and closed at Rs 215. Prices with GST remained three per cent higher. In the Ahmedabad market, silver fell by Rs 1,000 to Rs 2,000 per kg, gold by Rs 2.50 per ten grams and by Rs 2,000 to Rs 2,000.

The world market saw a sharp decline in the precious metal. Gold was trading at ૯૪ 150 an ounce, down from ૯૮૫ 15 yesterday, while silver was trading at ૩૭ 2.15 an ounce, down from ૩૭ 4.5 an ounce. In the minutes leading up to the US Federal Reserve meeting, federal officials noted that Corona had a serious impact on the US economy, and said the country's economy needed more support. The dollar index has risen after minutes of the Federal Committee.

In the domestic currency market, the dollar rose by 50 paise to Rs 2.09, while the euro fell by 3 paise to Rs 2.7 and the pound fell by 3 paise to close at Rs 2.15. Crude oil prices continued to weaken on the back of a slowdown in the US economy. New York crude was trading at ૪૨ 6.5 a barrel, while Brent was trading at 4.5.