2 weeks Ago By Ann Jacob
Domestic price of gold continued to cool off as festive demand has reduced. Price of the metal stood at Rs 78,740 as of 7:00 a.m.
on Wednesday, according to India Bullion Association. However, it has recovered slightly after it slipped on Tuesday. Domestic price of gold has seen a sharp decline since Oct.
31, after it dipped to Rs 78,670 post Diwali. Price of the yellow metal had rallied ahead of the festival season, going up to Rs 81,500 on Oct. 23 due to demand.
The commodity prices went up to Rs 79,970 on Oct. 30 before dropping. Gold price has held over the Rs 78,000 mark this month after the cool off.
The futures prices for Dec. 5, according to the Multi Commodity Exchange, stood at Rs 78,475. The futures prices of the commodity have also seen a slight slip post the festive season as demand dipped.
The global price of gold were recorded at $2,741 on Tuesday's closing according to Bloomberg. The intraday high was recorded at $2,746, while the commodity prices fell by 2.91%.
Global gold prices have been steady ahead of election and have been hovering around the record high for the week as the US went into polls. Prices are expected to experience certain fluctuation in reaction to the election results along with other global cues. The Federal Reserve, along with a few other global banks, are expected to cut rates this week, according to Bloomberg.
The rate cuts are also bound to impact the international prices of the commodity as the lower interest rates increase the traction of the commodity. Surging by 30% this year, the commodity has remained the safe haven investment for investors amid geo-political uncertainties and conflicts in West Asia. With the interest rate cuts in the past pushing the demand for the commodity, the announcement of these banks call for higher prices.
Price of silver stood at Rs 94,960 as of 7:00 a.m., according to the Bullion Association.
The commodity is recovering after the festive demand dip. The Dec. 5 futures prices for the commodity stand at Rs 94,640, according to MCX.
.
