Gold prices in India took a hit of ₹ 110 on Tuesday standing at ₹ 54,760 per 10 gram. Twenty four hours earlier, the price of the yellow metal stood at ₹54,870 per 10 gram. Data from Good Returns shows that the price of 22 carat gold in New Delhi is ₹50,200. The same metal costs ₹50,300 in Mumbai and ₹49,340 in Chennai. On the other hand, the cost of 24 carat gold in New Delhi stands at ₹ 54,760, while it is priced at ₹51,300 in Mumbai and ₹53,820 in Chennai. In Kolkata, the precious metal is currently priced at ₹ 50,730 for 22 carats and ₹ 53,430 for 24 carats. The same metal costs ₹48,950 for 22 carats and ₹53,700 for 24 carats in Bangalore.
The difference in tax rates and making processes cause the price of the metal to differ in different parts of the country. Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.20 percent at ₹ 50,570 per 10 gram. On Tuesday, India Gold October Futures rose slightly setting a positive trend after the tumble in gold prices on Monday.
However, according to experts, although the metal can face resistance of around ₹ 50,660 and on the downside, support levels are placed at ₹50,000-₹49,800.
Prices of gold and silver dropped around the globe as the US dollar index gained. The heavy sell-off in global equities also added to the crash in the price of the yellow metal. According to several sources, global banking concerns, fear of the second phase of lockdown in European countries pushed global equities lower that supported the US dollar index. The US dollar index was seen to get up to 93.80 marks again.
The gold price was seen to drop by 2.36 percent and end up at $1911.60 per troy ounce and silver plunged 9.53 percent to $24.39 per troy ounce, reported Moneycontrol.
Factors like concerns over HSBC Bank, uncertainty on further stimulus from US federal reserve, rebound in the dollar index, fear of the second phase of lockdown in the EU added to the sudden crash of prices of the metals.
Yesterday evening trade saw a surge of selling pressure for both the precious metals. As a report from popular the media agency Moneycontrol, Investors are turning their focus to Federal Reserve Chairman Jerome Powell, who is scheduled to appear before the US Congress later in this week, for further guidance on the Fed’s approach to inflation, which may provide some strength to the dollar and could correspondingly weaken the global gold prices in the weeks ahead.
Good returns data also show that the price of one Kilogram of Silver fell by ₹ 5,700 to end at ₹ 61,300 today. On Monday, the metal’s price was recorded to be ₹ 67,000.
Although the drop in prices for both of these metals, the platinum prices took a hike. The metal, platinum rose 0.4% to $889.5 per Troy ounce. The dollar to rupee conversion has been constant since yesterday without any fluctuation. Hike or plunge of price of the yellow metal would not have any relation with the dollar value.