Chennai: 22-carat jewellery gold has fallen by Rs. 2,680 per sovereign today (Sept. 28) in a single day. In the morning, it had fallen by Rs. 1,880 per sovereign, and in the evening it fell by another Rs. 800.
The price of gold is determined based on factors including the international economic and political situation, crude oil prices, the value of the Indian rupee against the US dollar, investment in gold, and activity in global stock markets.
Last May, the central government increased the customs duty on gold from 6 percent to 15 percent. Along with this, on the 1st, Prime Minister Narendra Modi told the people of the country, “Do not buy gold unnecessarily.”
Following this, gold prices are being sold with fluctuations in the market. In this situation, the price of gold in Chennai fell by Rs. 80 per sovereign on Saturday.
Rs. 4,960 drop per sovereign in a single week:
In this situation, as soon as trading began this morning in Chennai, the price of 22-carat jewellery gold fell by Rs. 235 per gram and is being sold at Rs. 13,765 per gram. It fell by Rs. 1,880 per sovereign and was sold at Rs. 1,10,120 per sovereign.
In the evening, the price fell by another Rs. 100 per gram and Rs. 800 per sovereign. 22-carat jewellery gold is being sold at Rs. 13,665 per gram and Rs. 1,09,320 per sovereign. As a result, gold has fallen by Rs. 2,680 per sovereign in a single day today. Over the past week, it has dropped by Rs. 4,960 per sovereign.
As for silver prices, it has fallen by Rs. 5 per gram today and is being sold at Rs. 245 per gram. It has also fallen by Rs. 5,000 per kilogram and is being sold at Rs. 2,45,000 per kilogram.
What is the reason for the continuous decline?
The US Federal Reserve is expected to raise interest rates again in October.
Recently, crude oil prices have risen due to the ongoing conflict between Yemen and Saudi Arabia.
The rise in crude oil prices has increased inflation. Yields on U.S. Treasury bonds have risen. These have reduced investments in gold.
At the same time, the value of the dollar has risen further. When the dollar strengthens, the price of gold in the international market naturally falls.
In this situation, market experts predict that gold prices may continue to move toward a further decline.
