On Monday, gold fell marginally by Rs 19 to Rs 46,826 per 10 grams at the bullion market in the national capital, in line with weak global cues and an improvement in the value of the rupee. According to HDFC Securities, on Friday, gold had closed at Rs 46,845 per 10 grams.
Silver becomes costlier by Rs 454
However, silver closed at Rs 69,072 per kg with a gain of Rs 646, against the previous closing price of Rs 68,426 per kg. In the international market, gold declined to the US $ 1,819 an ounce, while silver remained almost unchanged at $ 27.48 an ounce.
In this context, HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "In line with the global price of gold and the improvement in the value of the rupee, the spot price of 24-carat gold in Delhi declined by Rs. 19". In Sonwar, the rupee rose 14 paise to 72.61 against the dollar in early trade.
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.
Returned 151 percent in a decade
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 percent 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.