New Delhi. Due to weak global cues, the bullion market in the country remained sluggish for the last two weeks and the strength in the dollar may continue even further. In India, gold has lost Rs 11,500 per 10 grams in the past seven months, while the yellow metal has slipped more than $ 400 an ounce from the record high in the international market. The bullion market has slowed due to slowing investor sentiment towards investment in gold and silver due to better returns from bond market and strengthening dollar. The dollar index, the index of strength of the US dollar against the six major currencies of the world, has reached 92 for the first time since November last year and the dollar has remained strong for the last two weeks.
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Gold is cheaper
Commodity market experts say that due to good employment figures in the US, the dollar may continue to strengthen further. Bullion market experts point out that with the progress of the corona vaccination campaign and the recovery of economic activity around the world, the recovery in the global economy has led to a trend of investors looking for better returns, rather than gold, as a safe investment destination, leading to bullion market I remain lethargic.
How cheap is gold
On Friday, on the Indian futures market Multi Commodity Exchange (MCX), gold prices fell by Rs 44217 per 10 grams, while on August 7 last year, gold prices rose by Rs 56,191 per 10 grams on MACX. Silver on the MCX lost Rs 64,790 per kg in the previous week. At the same time, on the international market Comex, gold fell by $ 1,683 an ounce on Friday, while in August last year, the price of gold on Comex rose by $ 2,089.20 an ounce.
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How much more can fall
Commodity market expert Anuj Gupta says that the price of gold may break from $ 1,680 to $ 1,670 an ounce next week, while silver may see a level of $ 24 an ounce. This means that in the coming days, the price of gold in Indian markets may see a further decline of Rs 1500 per ten gram. The price of silver can be Rs 4000 per kg and less. Let me tell you that in the last session of last week, the April contract of gold on Comex closed at $ 1,698 an ounce, while the silver May contract closed at $ 25.28 an ounce.