Question

Why are gold prices going down right now? No spam answer

Answer 1

In India, gold prices have collapsed nearly ₹5,000 per 10 gram over two days while silver has plummeted ₹14,000 per kg. Currently, gold futures are trading at ₹50,502 per 10 gram on MCX, hitting ₹49,955 at day's low, while silver futures at ₹62,275. Just last Friday, gold prices had vaulted over ₹56,000 to hit a new high. According to analysts, the sharp fall in gold prices has been triggered by Russia coronavirus vaccine news that led to profit-taking.

"Gold lost some ground after Russia announced the world’s first Covid vaccine and profit-booking was seen at higher levels. A recovering U.S dollar and gains in equities too pressured the safe haven asset. However, hopes of fresh economic stimulus measures and rising US-China tensions continue to offer lower level support to the metal," said Hareesh V, Head Commodity Research at Geojit Financial Services.

Answer 2

Answer:

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As compared to last month's highs of ₹56,200, gold is now down over ₹6,000 per 10 gram in India. The primary reason for the fall in gold prices is the rally in the dollar index, uncertainty over the next stimulus package by the US government to help give a push to the slowing growth rate