Will gold prices continue to fall? The rise in interest rates and low liquidity created pressures on the international gold prices during February 2021.
Alongside, the widespread rollout of coronavirus vaccines in various nations created hopes of a faster global economic recovery, which capped the upside potential of gold price movement.
Will Gold Prices Continue to Fall? Below $1790 Gold Weak
However, the downside potential of this metal’s prices was restricted by the gradual spread of new strains of Covid-19 which led to fresh lockdowns in various cities of developed nations like the U.K. and Canada, among others.
Global gold investment demand Investments in gold-backed ETFs continues to remain firm as data from World Gold Council shows that global inflows in such assets stood at $7,238 million for year-to-date February 19, 2021.
Gold prices on Tuesday tumbled Rs 679 to Rs 44,760 per 10 grams in the national capital, due to bleak international market trend and rupee appreciation. The precious metal had closed at Rs 45,439 per 10 grams in the previous close.
Silver prices also crashed by Rs 1,847 to Rs 67,073 per kg from the closing of Rs 68,920 per kg in the previous day trade. MCX Money Senior Analyst (Commodities) Tapan Patel, “Spot prices for 24 karat gold at Delhi plunged by Rs 679 with fall in global gold prices and rupee appreciation.” The spot rupee was trading around 14 paise stronger against the US dollar during the day, he added.
In the international market, gold was trading lower at USD 1,719 an ounce and silver was down at USD 26.08 an ounce.