Gold Price Today: Gold became cheaper by Rs 1100, silver also fell sharply; is this the time to buy?
On Tuesday, the price of gold in the national capital fell by Rs 1100 to Rs 71700 per 10 grams due to weak demand from jewelers. In the previous session, the precious metal closed at Rs 72800 per 10 grams. Silver also continued to decline for the fourth consecutive session and on Tuesday it fell by Rs 2200 to Rs 82000 per kg.
The Weekly Mail Post 
Gold prices had fallen sharply after the reduction in custom duty in the Union Budget. But then, prices were rising due to global uncertainties and good demand from jewelers. However, on Tuesday, due to weak demand from jewelers, the price of gold in the national capital fell by Rs 1,100 to Rs 71,700 per 10 grams. In the previous session, this precious metal closed at Rs 72,800 per 10 grams.
According to the All India Sarafa Association, silver also continued to decline for the fourth consecutive session and on Tuesday it fell by Rs 2,200 to Rs 82,000 per kg, while in the previous trade it was at Rs 84,200 per kg. On August 2, the price of silver was at Rs 86,000 per kg. Since then, the price of silver has fallen by Rs 4,200 per kg in the last four sessions. In the international markets, gold fell by $ 20 to $ 2,409 an ounce in Comex.
Why did the prices of gold and silver fall?
Traders said that there was a decrease in demand from jewelers and retail buyers, due to which the prices of gold fell. According to Dilip Parmar, Research Analyst at HDFC Securities, weakness in the rupee and physical demand ahead of the festive season are expected to support domestic gold prices. He said that global uncertainty, central bank demand and low interest rates are positive signs for gold prices.
Effect of Japan and America factor
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, said, "The Bank of Japan had a negative interest rate for more than 18 years, and the sudden increase in interest rate narrowed the rate difference between Japan and the US, affecting carry trade unwinding and increasing pressure in major asset classes."
On the other hand, a weak dollar also helps the metal market, as traders expected more US interest cuts this year due to weak US economic readings. Additionally, weak economic data from the US spooked market participants and raised concerns that the US could slow down faster than initially expected.
