Falling Gold Prices

1
Falling Gold Prices

• The prices of gold have declined nearly 5 since
  the start of the year, with the precious metal
  seeing a fall of 2.77 in the first week of
  February.

2
Gold Prices The Decline

• The year 2020 and the current year couldnt be
  any different from one another. Not only did the
  last calendar year bring pandemic into all of our
  lives, but it also forced us to stay home,
  isolated. While the current year is on the same
  path, we have learnt to live with the ongoing
  virus. However, this is not the only change. On
  the economic front, both the years have been
  quite different from one another. When gold was
  riding the high waves in 2020, it is struggling
  to even touch the last years lowest point in
  2021.
• The prices of gold have declined nearly 5 since
  the start of the year, with the precious metal
  seeing a fall of 2.77 in the first week of
  February. Over the last couple of months as well,
  gold has been struggling to keep its shine as it
  continues falling in price. The reasons for such
  a decline is multifold, which is what we are here
  to discuss. Amid the ongoing fluctuations in gold
  prices, there is also an air of uncertainty
  around investing in gold right now. We will also
  briefly cover that topic for potential consumers
  to understand what is right for them.

3
Past Fluctuations in Gold Prices

• Starting from April of 2020, the gold was priced
  at around INR 3,861 per gram. The same increased
  to INR 4,419 by the end of the month. By August
  2020, the price reached INR 5,380, which was the
  highest recorded cost of the year till then.
  Although the price of the yellow metal dropped to
  cost nearly INR 4,470 by the end of November, it
  still recorded an overall increase since the
  start of 2020.
• By the end of January 2021, the price of gold was
  registered at INR 4,581, which had decreased to
  INR 4,110 by March-end. As of April 2021
  (current), the gold is priced at around INR 4,200
  per gram. Kindly note that all the prices
  mentioned here are for 22Karat gold, which is the
  purity of jewellery made out of yellow metal. The
  prices vary for 24Karat gold, which you could
  easily Google as per your requirement. Also, know
  that while jewellery pieces of gold are made of
  22karat, they will carry a higher value than
  stated here due to added making charges and other
  standard commercials used in the market.

4
Why are Gold Prices Falling?

• After a dream run in the past year, the price of
  yellow metal is continuously falling in 2021.
  When the domestic factors are combined with the
  international market prices, the reason behind
  such price fall comes out to be the rising US
  treasury. In India, the prime reason behind
  declining gold prices is Union Finance Minister
  Nirmala Sitharamans move to cut the customs duty
  on the yellow metal from 12 to 7.5 in the
  current fiscal year. Another reason is the
  strengthening of the Indian rupee against the
  American dollar. Over the last few trading
  sessions, the Indian currency has considerably
  gained in value against the dollar. As gold tends
  to gain its value when INR loses against the
  American dollar, the strengthening of the Indian
  rupee is supporting the price decline of the
  yellow metal.

5
Should You Invest in Gold this Year Around?

• Now comes the real question is it worth
  investing in gold at this time of the year when
  the yellow metal is losing its charm? The answer
  is tricky, but we will try to be straightforward
  as to avoid any kind of confusion. We would
  suggest that you can buy gold jewellery or coins
  of your choice this year without any hesitation.
  Like last year, demand for gold plummeted due to
  loss in jobs and poor appraisals it is likely to
  pick up this year. Investors are advised to buy
  gold in any form to diversify their portfolio.
• On the other hand, many experts have quoted that
  gold could touch more than INR 60,000 as the new
  year progresses. Moreover, why miss the
  opportunity to own a brilliant and trendy 22karat
  gold bracelet at lower prices than usual? Even if
  the cost of gold struggles to rise due to an
  unforeseen circumstance, it can see a rise in the
  upcoming year, which will only benefit you in the
  long run.