Gold Prices Drop Below Rs 75,000 As Demand Continues To Dip, Global Rates Hit Month's Low

Gold prices in India plunged to Rs 74,750 as of 6:57 a.m. which is below the previous record low. The prices, according to India Bullion Association, had last slipped to the Rs 74,000 mark on Sept. 20. They had held above the Rs 75,000 level since Oct. 9. The gold prices saw a spike in demand ahead of festivities and the prices went up to Rs 81,500 on Oct. 23. The prices have declined after Oct. 31 after the festive demand reduced and the prices have taken multiple plunges through the week.

The dip in demand post festivity was paired with the US election results that slumped prices. The domestic market has been directly impacted by the slip in the global demand of the commodity.

A stronger dollar and equities being preferred over the safe-play investment into the commodity has pulled down the prices. Gold prices in the global markets have taken plunges and domestic market prices have followed suit. Domestic prices have been on a steady decline after Oct. 31 and have been hovering just above previous record lows.

The futures prices for Dec. 5 stood at Rs 74,456, according to the Multi Commodity Exchange.

The global prices are at $2,606, according to the World Gold Council. The prices have hit the $2,600 mark after Sept. 20, when prices slipped to $2,605. The prices have declined as demand flowed out of the commodity and into equity as political uncertainties and conflicts de-escalated.

Prices of the yellow metal had seen a climb in October, but have fallen to levels below the previous lows in November. On Thursday, prices have dipped below the low recorded in October. The rates slipped below the month's low and are closer to the lows recorded in September.

Silver prices stood at Rs 89,580 as of 6:57 a.m., according to India Bullion Association. The futures prices for Dec. 5 stood at Rs 89,222, according to the MCX.