Gold and silver prices fell today in Indian markets amid weak global cues. Gold futures on MCX fell by 0.11 per cent to Rs 49,394 per 10 grams, while silver fell by 0.71 per cent to Rs 66,821 per kg. Gold had fallen 0.18 per cent in the previous session, while silver had fallen by 0.5 per cent. Gold is considered a hedge against inflation and currency debility, which can result in widespread excitement.
Price is so high in global markets
In global markets, spot gold fell 0.3 per cent to $ 1,863.56 an ounce. Among other precious metals, silver fell 1.1 percent to $ 25.67 an ounce, and platinum fell 1.2 percent to $ 1,113.40.
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. Market analysts want more clarity on other issues such as tax hikes, US-China relations, money market participation, etc.
Gold increased by 25 percent last year
Fiscal measures by central banks and governments worldwide to reduce the effects of the coronavirus had raised gold prices by more than 25 per cent last year, while silver had risen nearly 50 per cent. Gold in India is well below its August high of Rs 56,200 per 10 grams. Gold attracts 12.5 per cent import duty and three per cent GST on gold in India.
According to a World Gold Council (WGC) report, consumer sentiment is improving during 2021 in India with the recovery of the coronavirus epidemic and demand for gold appears positive.