With the decrease in the dollar rate today, Gold and silver have jumped down from their price points of yesterday.
According to HDFC Securities, Gold fell Rs. 136, arriving at Rs.48,813 for 10 gms of the precious metal in Delhi on Friday while silver dropped Rs. 346, with its new price being Rs. 63,343 per kilogram.
Previously, Gold stood at Rs.48,949 per 10 gms compared to August’s rise of almost Rs.57,000.
The rates have seen a decline of almost 15% since August which marked as the peak of the coronavirus pandemic. While the virus has still latched itself onto the world, the downward trajectory of precious metal prices is due to the increased hopes of a vaccine in the near future.
With the development of a vaccine for mass administration, shrunken economies are expected to get boosted with normal life returning back to its respectful owners.
As not just one but 4 vaccine candidates have declared their efficient reports of clinical trials where they proved to be over 90% effective, there are high hopes of the US dollar going down further, with an appreciation in the rupee.
Indian rupee went up by 16 paise against the US dollar on Friday, taking the dollar to Rs.73.77 in the opening session.
Silver followed suit and fell Rs.346 down to Rs,63,343 per kg as its new price while it was slated at Rs.63,689 per kg on Thursday.
As far as the international market is concerned, gold saw a borderline gain at USD 1,842 per ounce and silver remained steady at USD 24.02 per ounce.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “Gold prices continued upside as dollar decline boosted buying in precious metals. The renewed stimulus hopes have pushed dollar down supporting buying in bullion prices.”
August trends witnessed Rs.700 jump of Gold taking it to almost Rs.57,000 per 10 gms while silver increased Rs.3000 per kg.
However, since Gold hit Rs.56,200 in the same month, it has continued going down the hill and is expected to get weaker by the time a vaccine gets released in the worldwide market, especially India.
Hopes are also fuelled by the emergency use authorization permits granted by the governments of the UK and Russia to vaccine makers.
While this may be a bad news for people who invested in Gold while it was in its 50,000+ range, investors who are looking at the precious metal for a long term profit are either way going to fetch it as its history of the past decade shows how it jumped ten times its original value.
