Hyderabad: The gold price is falling continuously this year after a record high last year. The 22-carat gold price is down by over Rs.11,000 per ten gram this year.
As per the good returns website, the gold price touched a record high in August last year at Rs.54,750 per 10 grams. The current gold price recorded on Saturday in Delhi is Rs.43,590 per 10 grams. Thus, the total fall in the gold price during the last seven months is Rs.11,160 per 10 grams.
Fall in silver price
It is not only the gold, even the silver prices are falling in the market. The price fell from Rs.73,300 per kg on February 1 to Rs.65,700 per kg on March 6. The fall in silver price is due to a decrease in its demand for industrial use.
Banks and other financial institutions that mortgage gold are calling their customers and demanding to either deposit more gold or pay a portion of the loan they have taken against the gold.
Reasons for gold price fall
The government had announced a cut in the customs duty on gold in the current budget of 2021-22 which affected gold prices.
Similarly, the increase in the US dollar, trust in bonds, and policies of the Biden administration also impacted the gold prices.
Due to the coronavirus pandemic, the world economic system was badly hit. However, the opening of the stock markets around the world also contributed to the fall of gold prices.
But according to the market sources, the buyers are sticking to the policy of “Wait more”.