The price of gold declined in the national capital

Today, the price of gold declined in the national capital and silver became expensive. According to HDFC Securities, today the gold price fell by Rs 71 to Rs 51,125 per 10 grams. The yellow metal had closed at Rs 51,196 per 10 grams on the previous trading day.

Talking about silver, today silver prices rose by Rs 156 to Rs 70,082 per kg as against Rs 69,926 per kg in the previous trading session. In the international market, gold and silver stood at US $ 1,949 an ounce and US $ 27.54 an ounce respectively.

If you look at the data from January 2011 to December 2020, gold has been heavy on both Sensex and Silver in terms of returns. Gold has given a return of 151 per cent in this decade. Gold took a good lead in 2011, but after that it was around 28,000 from January 2012 to June 2017. That is, it did not give any returns for five and a half years. Gold started picking up again from December 2019 and has created a new historical level.

The price of gold declined in the national capital
The price of gold declined in the national capital

Gold has benefited from large-scale incentives in the year 2020 to counter Corona’s economic impact. It has increased by 25 per cent in 2020. Gold is seen as a hedge against inflation and currency decline. Talking about silver, it rose by 50 percent. India is the second largest buyer of gold after China. Gold attracts 12.5 per cent import duty and three per cent GST on gold in India. The flow of ETFs reflects weak investor interest in gold.

Gold and silver price fluctuations are caused by fluctuations in the US dollar, rising corona virus cases and related restrictions, mixed economic data from major economies, and additional stimulus measures. Analysts say the biggest factor on the price of gold in the last few weeks is progress on the vaccine front.