Gold and silver prices crumble as stockists are on a selling spree
New Delhi: Recent trends had shown gold rise to record levels, when at one stage it was stated to touch the Rs 33,000 mark, but now there seems to have been a sharp fall in price. The price have gone down by Rs 400, to land at Rs 32,500 per 10 grams. The main reason attributed to such a fall has been the diminishing demand amongst buyers waiting for the fall, and also becuase of the condition in the international markets, which pushed the prices of the metal downwards. Similar was the case with the silver market, where prices ended at Rs 61,900 per kilogram, which was rather due to lower demand from international coin makers.
The main stockists were hoping that the upcoming festival and wedding season would peak the demand for the gold, but they were in for a shocker. The Indian consumers held back their plans and waited patiently till the prices went down by quiet a bit. Aslo, the international market such as the US, showed a downward trend which had its ripple effect on the precious metal.
Though there may not exist a direct relationship, but gold prices and the purchasing strength of the Rupee have an inverse relationship. Due to the recent strengthening of the currency fueled by the economic reforms, gold prices saw a downfall as purchasing power of the Rupee got higher. Though not an ideal situation, but it gave buyers some amount of momentary relief, who will be dishing out the cash to buy the metal.