Gold fell by Rs 133 to Rs 51,989 per 10 grams in the Delhi Bullion Market on Tuesday amid a weak global trend. It declined after three sessions. Talking about silver, it fell by Rs 875 to Rs 63,860 per kg.
In the international market, gold was soft at $ 1,919 an ounce and silver was almost at the previous level at $ 24.89 an ounce. In this context, HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “Gold remained under pressure due to the improvement in the dollar and the strengthening of the stock market in anticipation of the US stimulus package.” In the interbank foreign exchange market, the rupee fell seven paise to close at 73.35 per dollar.
On Monday, gold and silver became expensive in the domestic market due to the fall in the rupee against the dollar. Gold had risen by Rs 240 to Rs 52,073 per 10 grams and silver had gained Rs 786, after which it had risen to Rs 64,927 per kg. In the international market, gold was trading at $ 1,925 an ounce, while silver was at $ 25.26 an ounce.
The Reserve Bank of India (RBI) has fixed the issue price of gold bonds at Rs 5,051 per gram. The series of Sovereign Gold Bond Scheme 2020-21 – will be open from October 12 to October 16 for seven subscriptions. RBI said in a statement, “The value of the bond is Rs. 5,051 per gram based on the average closing price of 999 purity gold for the last three trading days of the previous week from the subscription period”.
In India, gold prices have risen by 29 per cent this year in line with global levels. Analysts expect the fall in the price of gold based on the appreciation in the US dollar and general market risk perception. Analysts expect the demand for gold in India to increase in the festive season. Gold is affected by widespread stimulus measures as it is widely seen as a hedge against inflation and currency depreciation.