Gold prices slide further; 13 percent decline in 2021

Gold and silver prices continue to fall. Gold has become cheaper by about Rs 12,313 in the last 8 months. On August 6 last year, its price reached 56,200 rupees / 10 grams. This was a record price of 10 grams of gold. Since then, the brightness of gold has faded.

The price of gold on March 5 is 43,887 rupees. Gold has come down by 22% during this period. The 13% decline has come only in 2 months of this year. So far in 2021, gold has become cheaper by more than 6,413 rupees. On January 1 it was at Rs 50,300.

Meanwhile silver, has become expensive by about Rs 2,145. On January 1, silver stood at Rs 66,950. Now its price is 64,805 rupees. In the international market, the price of gold was US $ 1,692.70 per ounce. Gold has slipped 2% in the week due to strong dollar and bond yields in the US.

Why gold price is decreasing?

Most experts believe that investors always want higher and safer profits. They get this in the stock market, FD, bonds and gold. When the conditions are normal, the profits come from the stock market or bonds. When upheaval prevails in the global economy, investors increase investment in gold. Due to this, the demand for gold in investors increased during the corona period.

At this time, the economy is becoming normal. Therefore, the attachment of investors is decreasing with gold. Apart from this, the price of gold has come down due to lower import duty and strengthening dollar. The price of gold is expected to be almost constant in the coming one to 2 years. Apart from this, there was also the effect of increasing the US bond yield. Precious metals slipped 2% in the week.

Import duty reduced by 5% in the budget

Finance Minister Nirmala Sitharaman has announced to reduce import duty on gold and silver by 5% in the budget this time. Currently, 12.5% ​​import duty has to be paid on gold and silver. Only 7.5% import duty will have to be paid after deducting 5%. Due to this, there is a decline in the prices of gold and silver.