Gold price falls, silver plunges sharply on bullion market

NEW DELHI: The prices of gold and silver dropped on Wednesday, ending a string of hikes.
While the price of gold dropped by 0.83 per cent, silver plunged sharply on the bullion market. It shed Rs 2,863 and was trading at Rs 67,135 per kilogram.
Gold, on the other hand, was trading at Rs 53,424 per 10 gram. It had closed at Rs 54,856 per 10 gram on Tuesday.
The price of gold had jumped by Rs 1,182 on Tuesday following rally in international prices of the yellow metal. Silver was also in heavy demand as it zoomed Rs 1,587 to Rs 72,547 per kg, from Rs 70,960 per kg in the previous trade.
In the international market, gold was quoting higher at US $2,005 per ounce and silver also depicted strength as it traded higher at US $28.15 per ounce.
On Wednesday, gold fell below $2,000 an ounce in the international market as the dollar steadied, with investors awaiting minutes from the US Federal Reserve’s last policy meeting.
Spot gold was down 0.7% at $1,987.36 per ounce.
The dollar index edged 0.1% higher against its rivals after hitting a more than two-year low in the last session. A stronger greenback makes gold expensive for holders of other currencies.
The dollar, also considered a safe-haven, has lost its appeal recently after the US central bank rolled out a wave of fiscal measures and cut interest rates to near zero to mitigate economic damage caused by the coronavirus outbreak.
Meanwhile, Asian shares climbed to a seven-month peak on Wednesday tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.

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