Gold and silver prices have fallen drastically before Dhanteras and Diwali. Gold fell by Rs 662 to Rs 50,338 per 10 grams in the Delhi Sarafa market on Tuesday. Similarly, silver also lost Rs 1,431 to Rs 62,217 per kg. HDFC Securities gave this information.
Price was so much in the last session
Gold had closed at Rs 51,000 per 10 gram in the previous trading session. Similarly, silver also lost Rs 1,431 to Rs 62,217 per kg. Silver had closed at Rs 63,648 per kg in the previous trading session. In the international market, gold was up at $ 1,886 an ounce. Silver was steady at $ 24.31 an ounce.
The festive purchase will increase
HDFC Securities Senior Analyst (Commodities) Tapan Patel said that the 'correction' in gold prices in India may increase its festive purchases before Dhanteras.
According to Navneet Damani, vice-president (commodity market research), Motilal Oswal Financial Serbiseje, the drop in gold is due to a sudden surge in investors' inclination towards more risky assets like stock bonds. The fallout comes from Joe Biden's victory in the US presidential election, as well as the unexpected announcement of Pfizer's success in developing the Kovid-19 vaccine. In his opinion, gold can still be in the range of 49,600-50,900.
The government is selling gold cheaply before festivals
Most people buy gold during Dhanteras and Diwali. People believe that buying gold on Dhanteras is auspicious. Meanwhile, the government has opened the eighth series of the sovereign gold bond scheme for subscription from November 9. This bond can be invested till November 13. The price of gold for this gold bond has been fixed at Rs 5,177 per gram. On the other hand, if the purchase of the gold bond is done online, then the government will get an additional rebate of Rs 50 per gram to such investors.
Demand will increase in the festive season
In India, gold prices have risen by 31 percent this year in line with global levels. Analysts expect the demand for gold in India to increase during the festive season. Gold is affected by widespread stimulus measures as it is widely seen as a hedge against inflation and currency depreciation.
India has so much gold reserves
It is known that according to the report of the World Gold Council, India currently has 653 metric tons of gold. With this, India comes in 9th position in the world in terms of the highest gold reserve. This is 7.4 percent of its total foreign exchange reserves.