Mumbai: The good news about the coronavirus vaccine has led to a sharp fall in gold prices internationally. According to the news agency Reuters, international gold prices fell more than 5 percent. Experts say that in terms of percentage, this is the biggest drop in gold in a single day since 2013. The effect of these signals will also be seen in the domestic market. Gold prices may fall sharply in Indian markets. Prices are likely to fall by 5-8 percent from the current level. Because the Indian rupee is also getting stronger continuously. Let me tell you that on Monday, the price of gold rose to Rs. 52,183 in the Delhi bullion market. Earlier on Friday, it had closed at Rs 51.06 per 10 grams.
The good news about vaccines has reduced the demand for safe investments in gold. This pushed down the price of gold and silver. In overseas markets, U.S. gold futures tumbled 4.9 percent to 1855.30 an ounce, while the gold spot fell 4.9 percent to 1854.44 a barrel. Gold broke $100 on Monday. Gold traded at around 1965.33 an ounce in early trade yesterday.
On Monday, crude oil prices rose sharply. International benchmark Brent crude jumped 8 percent to 42.61 a barrel. Similarly, US crude rose 9 percent to 40.49 a barrel. News of the corona vaccine is likely to increase demand for crude oil, which has pushed up crude prices.
What will happen now: Experts point out that gold often shines in difficult times. Gold prices reached new highs during the recession of the 1970s. This was followed by a similar period in the 2008 recession. If you look at the statistics, gold rose more than seven times in the 80s to a record high of 850 an ounce. It rose again after the 2008 global financial crisis, which crossed $1,900 in 2011. But then fell considerably. That is why it is now believed that if the corona vaccine arrives and it travels completely, then gold prices will fall sharply.
So will gold be cheaper in India now too? Experts say that news about the corona vaccine will come. Anyway, the pressure on gold prices will increase. At the current level, gold prices may fall by 5-8 percent.
