Gold has fallen considerably compared to August's high of Rs 56,200. It has fallen by 18 percent, ie, about Rs 10,000. With this, gold futures now reached an eight-month low. Today, futures on MCX rose 0.12 percent to Rs 46,297 per 10 grams, while silver futures were down 0.4 percent to Rs 68,989 per kg.
Price is so high in global markets
The price of gold in global markets was flat today. Spot gold was flat at $ 1,770.15 an ounce and so far it has fallen 0.6 percent this week. US gold futures fell 0.5 percent to USD 1,767.10 per dollar. The dollar index was up 0.06 percent at 90.188 today. Among other precious metals, silver rose 0.3 percent to $ 27.49 an ounce, while palladium was steady at $ 2,400.43 and platinum rose 0.1 percent to $ 1,217.93.
Gold increased by 25 percent last year
Fiscal measures by central banks and governments around the world to reduce the effects of the coronavirus had raised gold prices by more than 25 percent last year, while silver had risen nearly 50 percent. Gold is seen as a hedge against inflation and currency depreciation. Gold in India is well below its August high of Rs 56,200 per 10 grams.
Major causes of price fluctuations
Gold and silver price fluctuations have been seen in US dollar fluctuations, rising Coronavirus cases, and related restrictions, mixed economic data from major economies, additional stimulus measures, and Brexit uncertainty. The flow of ETFs reflects weak investor interest in gold. India's demand for gold declined by 35.34 percent to 446.4 tonnes in the last year i.e. 2020, from 690.4 tonnes in 2019.