Gold prices fall marginally, silver rises by Rs 95

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On Tuesday, gold fell marginally by Rs 9 to Rs 46,900 per 10 gram in the national capital's Sarafa Bazar. According to HDFC Securities, on Monday, gold had closed at Rs 46,909 per 10 grams. Silver closed at Rs 69,530 per kg with a gain of Rs 95, against the previous closing price of Rs 69,435 per kg. Gold rose to the US $ 1,821 an ounce in the international market, while silver remained nearly unchanged at $ 27.60 an ounce.



So the decline

HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "The 24-carat gold spot price declined marginally by nine rupees in Delhi, as the global gold price remained in a narrow range."


Major causes of price fluctuations

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

Gold increased by 25 percent in 2020

Gold has benefited from large-scale incentives in the year 2020 to counter Corona's economic impact. It has increased by 25 percent in 2020. Gold is seen as a hedge against inflation and currency decline. Talking about silver, it had increased by 50 percent during this period.

Gold ETF investment increased by 45% in January

In India, Rs 625 crore was invested in Gold Exchange Traded Funds (ETFs) in January, up 45 percent from the previous month. Investors expect the gold market to be good going forward. According to data from AMFI, a consortium of mutual fund companies, investment in gold ETFs increased 22 percent to Rs 14,481 crore at the end of January from Rs 14,174 crore at the end of December. There was a net withdrawal of Rs 141 crore from such schemes in November 2020. In December, it saw a net investment of Rs 431 crore. Himanshu Srivastava, Assistant Director - Research Manager, Morningstar India, said that gold prices have come down from the all-time highs taken in August last year. In the month of January too, its prices have fallen significantly.