Kochi: Gold price witnessed the biggest single-day fall in Kerala on Wednesday.
The price of a gramme fell by Rs 200 due to the fall in international prices.
A sovereign of gold also became cheaper by Rs 1,600 at Rs 39,200; it has dropped by Rs 2,800 in the last three days. Last week, the price of a sovereign was Rs 4,200.
During trading in international markets, the price of a troy ounce (31.1 grammes of gold) crashed to $1,855 before recovering to $1,938. The price has fallen from a recent high $2,081.6.
In Kerala, the previous biggest price fall was about Rs 1,200 per sovereign.
Many reasons for the fall
The strength of the US dollar in international trade was the main reason for the fall in gold prices, which were climbing to record highs almost every day. The dollar has recovered from a two-year low. If it continues to gain strength, the prices of gold will fall further.
Gold prices also fell because of profit-booking by investors. If investors start selling in bigger quantities, then the demand for gold in the international market will decrease.
Experts’ observation that the stimulus package announced by the United States to overcome the COVID crisis has started yielding results also resulted in a fall in the demand for gold and the strengthening of the dollar.
Russia’s COVID vaccine approval also reduced the demand for gold in international trading. Big investors also sold the precious metal as soon as the news of Russia’s vaccine came out.
Silver prices also collapse
Silver price fell 11 per cent during trading on Wednesday.
The price, which had touched $30 a troy ounce, fell to $ 24 in the international market.
In Kerala, the price of a gramme of silver fell to Rs 73 from Rs 80.
The price of 925 hallmarked silver also fell by Rs 7 to Rs 93.
Platinum prices also dropped by 10 per cent on Wednesday.
