After a successful run for a few months, gold prices have hit the lowest in the last six weeks. The price drop came after dollar strengthened, making this the longest ever losing streak for gold since January 1997. September saw a decrease by 1.6% in gold price.
The prices of 99.9% and 99.5% purity gold in Delhi came to Rs 31,300 and Rs 31,150 per 10 gram, respectively. The metal has fallen by Rs 175 in the last two days.
Following the footsteps of gold, silver fell by Rs 450 to Rs 38,000 per Kg.
Dollar firmed on Friday at the fastest pace in the last 4 years, according to the economic growth. The durable goods market also recorded a positive growth of 4.5 per cent from the 1.2 per cent drop in the last month.
With the ongoing trade war between China and the United States, the hike in dollar is expected. The gold prices are likely to see a fall in the coming year, owing to the same. Four more increases are expected to happen by the end of 2019 and another in 2020.
Compared to the high valuation that gold achieved in April, it has fallen by 13 per cent because of stronger dollar value. Also, the accusation of Chinese meddling by President Donald Trump in the upcoming elections has given new directions to the price affair.
Apart from gold, palladium rose to $1,087.40 an ounce and platinum was up by 0.1 per cent to $809.60.
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