Gold Prices Continue Downtrend Amid Post Festive Slump

Domestic prices of gold have slipped to Rs 77,040 as of 12:00 p.m., according to India Bullion Association. The prices have slipped further, hovering near the last recorded low in November.

Prices hit record low of the month on Nov. 6 slipping to Rs 76,980. The slip in demand has caused a constant decline in prices after Oct. 31.

The prices continue to slip after the post festive slump has evidently hit the domestic prices. The prices had shot up to Rs 81,500 on Oct. 23, ahead of the festive season before the sharp slip on prices. The dip in demand has pulled down prices since Oct. 31 as the prices have seen a steady decline.

The futures prices of the commodity have also reflected the slip. The futures prices for Dec. 5 stood at Rs 76,747, according to the Multi Commodity Exchange. The futures prices have seen a 0.68% decline as well.

The global prices for gold stand at $2,669 per troy ounce, according to the World Gold Council. The international prices have slipped further down and is hovering over the previous lows recorded.

With the last low being recorded on Nov. 7 at $2,647 per troy ounce, the current prices are a few dollars away from hitting this record low. The prices have slipped as political uncertainty has cleared up after the US elections.

For investors, gold is considered a safe-play investment that is considered stable amid global uncertainties and geo-political conflicts. The reduction in global demand has caused the international prices to slump as the prices took a plunge on Nov. 6 and Nov. 7 consecutively.

The silver prices stand at Rs 91,310 per kilo gram as of 12:00 p.m., according to the India Bullion Association. The futures prices for Dec. 5 are Rs 90,888, according to the MCX.