Bullion prices cool as investors book profits
After hitting record highs for five sessions straight, gold and silver prices stabilized on Wednesday. Bullion traders said this was due to investors booking their profits in the precious metals. The price of gold was closed at Rs 74,200 per 10g in the Ahmedabad market on Wednesday and with silver costing Rs 82,000 per kg.
“Amid rising geopolitical tensions and consistently high procurement by central
banks including that of India, gold witnessed a sharp spurt in prices. Gold has
appreciated by about 22% in a year, from Rs 61,200 per 10g on April 1 last
year.
Similarly, silver prices went from Rs 71,000 per kg to Rs 81,000 in the same period, a return of about 15%,” said Haresh Acharya, director of the India Bullion and Jewellers’ Association. In international markets, gold prices fell from record highs of $2,360 per troy ounce to $2,334.35 per troy ounce at about 7.30pm on Wednesday, backed by US inflation data.
“Because of the high returns, a section of investors who tend to play safe
traded off gold and gold ETFs to book their gains,” Acharya said. Since
mid-February, the yellow metal has appreciated by 20%. Retail demand has
plunged because of the high prices. Bullion traders say it will revive only on
account of festive muhurats.
Source: https://timesofindia.indiatimes.com/