Ahmedabad: Rs 4,000 gap in silver: Rapid retreat in gold

(By commercial representative) Ahmedabad, Mumbai, Ta. 22 September 2020, Tuesday

Behind the world market, the price of precious metals fell sharply. Silver lost Rs 2,000 per kg, while gold also fell. Gold and silver have declined as global fundhouses have sold gold and turned to the dollar. Crude oil was in favor of modest recovery after the shock. The rupee weakened at home as the dollar index rose.

In the Ahmedabad market, silver fell by Rs 3,000 to Rs 30,000 per kg. Gold fell by Rs 200 to Rs 2.50 per ten grams and Rs 500 to Rs 4.50 per ten grams.

In the Mumbai market, the gold-free price of 2.50 gold per ten grams, which had closed at Rs 3,113 yesterday, fell below Rs 21,000 today to close at Rs 4,050.

Gold was closing at Rs 705, up from Rs 3,171. Prices with GST were quoted three per cent higher. The price of one kg of silver, excluding GST, was Rs 4,151 and closed at more than Rs 2,000. Prices with GST were quoted three per cent higher.

Gold traded at ૯૩ 161 an ounce, up 17 an ounce and traded at ૯ 1,304 an ounce late in the day.

Silver traded at ૨૩ 2.50 an ounce, up from 2.50 an ounce. Platinum was trading at ૮૯૩ 8, while palladium was trading at ૨૨૭૭ 21 an ounce.

Selling gold as a global safe haven is turning to investing in dollars. This led to a three-month high in the dollar index yesterday. Corona cases are re-emerging in Europe and Britain, leading to renewed lockdowns.

In the Mumbai currency market, the dollar rose to Rs 7.5 and finally closed at Rs 4.5, up 20 paise from yesterday's close. Crude oil prices rebounded today after a five per cent decline yesterday. New York crude was trading at ૬ 2.50 a barrel, while Brent was trading at 6 a barrel.