The fall seemed to suggest as if customers were just waiting for the metal to take a dive before going for the kill.
Demand for gold rose sharply on Thursday after the yellow metal crashed to second highest single day crash in last six months. The metal crashed Rs850 to close at Rs28,200 on Thursday. The fall seemed to suggest as if customers were just waiting for the metal to take a dive before going for the kill.
So, is it a good time to buy gold or silver? Experts always nod in yes if you buy it with a long-term perspective. After its slide on Thursday, traders and analysts believe that there is still room for correction of another Rs200 to Rs500 in coming days.
Due to correction in global markets, yellow metal was down by 3% on Thursday and closed at Rs28,200 per 10 gram of 99.9% pure gold, against previous day closing of Rs29,050 per 10 gram in Ahmedabad bullion market.
In case of silver, which climbed Rs2,200 on Wednesday, it was a level playing field on Thursday as it crashed by Rs2,200 to close at Rs58,000 per kg in the city.
Gold has seen ups and downs in the last six months period, since August 25, 2011. On August 25, 2011, it broke all record to crash by Rs2,050 in Ahmedabad on a single day. The, the metal made a remarkable comeback towards the month-end with rise of Rs1,100, another record jump in a single day. Taking cue from history, there are possibilities that gold may surge again, but experts warn that bullion is likely to remain bearish.
“People were not aware of crash in gold prices on Thursday and it is expected to spread throughout the day (Thursday). So, we are expecting a mad rush for gold on Friday. As of now there is not any much demand either for jewellery or bullion,” Manoj Soni, MD, AB Jewels, said.
In Mumbai too, pure gold of 99.9% purity also plummeted by Rs940 to end at Rs27,810 per 10 gram from Rs28,750 of Wednesday closing. Silver nosedived by Rs2,545 per kg to conclude at Rs58,275 from overnight closing level of Rs60,820.
Meanwhile in Delhi, the gold of 99.9% purity tumbled by Rs920 to closed at Rs28,140 per 10 grams and silver nosedived by Rs2,200 to closed at Rs58,300 per kg.
In New York, In New York last evening, gold tumbled by $100, or 5.6%, to $1,688.40 an ounce, the lowest level since January 25. The trading sentiment in gold dampened as in global markets it fell by $100 to trade below to hit the $1,700 an ounce level on signs that the Federal Reserve will refrain from offering more monetary stimulus to boost the US economy.
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