The Prices of Gold May Keep On Plunging There was a huge dip in the domestic as well as in international bullion market at the end of the week on Saturday. After the fall in the crude oil prices by 10-11 dollars, a fall in Gold by $ 34 and Silver $ 105 Cents has been registered due to the heavy selling in the international markets. As a result, the prices of Silver spot went down by Rs. 1270 and reached up to only Rs. 35,380 per kg. It also impacted gold that got a blow of Rs. 400 and reached up to 26,200 per 10g. As the Reserve Bank of India has called of the 80:20 policy with immediate effect, the prices of gold may go down due to this step of RBI, corporate news reported.
Despite the excess in supply in the international market, the decision of keeping the crude oil production at the present level was taken and after that a decline was seen in the oil prices and at the end of the week, it reached up to the mark of $66.36 per barrel by falling 10 to 11 dollars. Due to the news of break in the crude oil, the all-around sell by the investors of global markets caused Silver to go down by 105 cents and reached Rs.1270 per ounce. There was a slight dip of Rs. 50 last week and due to the all-around selling by the bookies, weekly commodity went down by Rs.1575 and reached Rs. 34,525. There was a hike of Rs.100 before one week, corporate news reported.
Like silver, there was a decline in gold as well in the reviewed week. Due to the heavy selling done by the investors in the international markets, there was a crack in gold by $34 and it reached $1164 per ounce. It got a hike of $12 before this. However, the selling pressure of stockiest caused gold kilo bar went down by Rs.400 and reached Rs. 26,200 per 10g in the local wholesale bullion market. Guinea Atgrami continues to be weak and dipped to Rs. 100 and Rs. 23, 600 by the recession. It got the same dip a week ago, as per corporate news. The purpose of making the import rules liberal, RBI announced to take its 80:20 policies back at the end of the reviewed month. This is likely to increase the supply of gold. Also, in the month of October gold imports jumped 280 per cent to more than 95 thousand kilograms as per reports. The combined impact of all these factors, prices of gold is expected to go down in near future but the potential weakness of Rs may put some reins.