Gold and silver prices on Wednesday fell sharply for the second straight day. On MCX, October gold futures fell as much as 3% or ₹1,500 to ₹50,441 per 10 gram. Silver futures on MCX fell over 5% or ₹5,000 per kg to ₹61972.
Last week, gold prices in India had jumped over ₹56,000 while silver had almost touched ₹78,000.The fall was in line with the international spot prices where gold prices fell as US bond yields advanced and the dollar recovered.
Analysts, however, predict that the yellow metal would soon be back on the upward trend.
According to the analysts the fall in gold prices has been caused due to Russia’s announcement that it has developed the first vaccine for novel coronavirus.
The sharp spike in prices and job losses across sectors had wiped out gold demand in India. Nidhi Saxena, 31, a software engineer who works in a technology firm based in Mumbai, India, was planning to buy gold bangles in July, but changed her mind as gold prices spiked and colleagues were laid off.“I can’t even think of buying gold right now when I am not even sure if my job is safe,” she said.