Ahmedabad: After sharp rise, gold prices fall to Rs 44,100

AHMEDABAD: After a sharp rise in gold prices that breached the Rs 45,000-mark on Monday, touching a new record high, the yellow metal prices fell once again on Tuesday. Pure gold price settled at Rs 44,100 per 10 gram on Tuesday in the Ahmedabad market, sliding by Rs 950 in just a day. Analysts said that gold prices declined in the international market, because of which they plunged in the local markets as well.
“Safe haven investments by global investors went up in the past few days, amid growing worries over coronavirus outbreak in other countries, due to which gold prices went up in the international markets, as they opened on Monday.However, owing to profit-booking by investors, prices showed a decline a day later on Tuesday,” said Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA).
Due to rising gold prices, the demand for physical gold has shown a sharp decline in the local markets, said bullion traders as well as jewellers.
“The market is in the worst possible condition at this point and even the ongoing wedding season has failed to revive demand for physical gold. High prices are hurting the customers and impacting purchases. The wedding season will soon be done with and it will further hit demand severely if prices remain at the same point,” said a city-based bullion trader.