Gold prices tumble
Gold hit a 21-month low and silver prices plunged to a two-and-a-half-year level on Monday. Experts said that this happened because of the strengthening of the dollar. According to MCX data, gold price plummeted to Rs 25,574 per 10 gm (down Rs 261) and silver dipped to Rs 41,459 per 1 kg (down Rs 1,170).
“This slow and steady fall of gold price is mainly due to strengthening of the dollar against the rupee. Euro is also doing better and Spain has clocked positive balance of payment,” Pankaj Parekh, vice-chairman of the Gems & Jewellery Export Promotion Council said. He emphasised that the economic situation globally is improving and stock exchanges across the world are bullish.
Gold touched Rs 25,766 per 10 gm in April 17 from a peak of Rs 32,464 per 10 gram struck in November last year. “A month ago, gold prices dipped to similar level and from there it bounced back to Rs 27,500 per 10 grams level a fortnight back. The prices are dipping and recouping.
It has remained range-bound between Rs 26,000 and Rs 27,500 per 10 grams over the last one month,” said Rahul Gupta, director, PP Jewellers.