Gold Prices Fall As Demand Continues To Decline—Check Rates

Gold price in India has plunged to Rs 75,210 per 10 grams, according to the India Bullion Association as of 7:00 a.m. The prices are following the trends in the international market. The commodity has been hovering just above monthly lows.

Gold prices have not slipped below Rs 75,060 since Oct. 9, which was the last record low. The prices had gone up to Rs 81,500 on Oct. 23 before they dipped on Oct. 31 to Rs 78,670.

The domestic price rally seen ahead of festive season dipped significantly after the demand toned down post festive season. The yellow metal prices did not see a recovery on the back of US election results. The global markets also saw a slip in demand for the commodity that directly impacts the local prices.

The decline continues as the demand for the commodity goes down a slope. The futures prices for Dec. 5 stand at Rs 74,912, according to the Multi Commodity Exchange.

The global price stood at $2,624 after it slipped further. The prices had hit record lows on Tuesday and they are just holding above those levels.

Often considered a safe-play investment, the demand and prices of the commodity increase amid global uncertainties and escalating geopolitical conflict. The outcome of the US election being one a global cue, had a direct impact on the rates of gold. The clarity in political stand, policy and more has given equity preference among investors.

Paired with a stronger dollar index, gold is bound to see a decline when the funds flow into equity.

The silver prices are at Rs 89,600, according to the India Bullion Association as of 7:00 a.m.