Gold prices are on a continuous sinking trend for the last 7 days. Gold price hit a 4-month low, falling by Rs 180 in Delhi bullion market on Tuesday. Gold prices have fallen Rs 1,000 in a 7-day period, equalling a level last seen when bullion market reopened after a 16-day halt due to demonetisation on 28 November 2016, back then gold witnessed a massive dive of Rs 1,750. A massive plunge of Rs 1,000 in gold prices over last 7 days has taken it to Rs 29,400 per 10 gram. Earlier last year, gold and jewellery establishments were closed for 16 days after the Income-Tax department carried out surveys on alleged profiteering and issue arising related to tax evasion.
Other than lower demand from local jewellers, the sharp fall in gold price is also due to the slumping prices in the international commodity market. In the overseas market, gold prices recently touched a 5-month low ahead of a widely expected US interest rate increase this week. Meanwhile, prices of silver coins have slipped Rs 4,000 each in 7-day period to Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.
Globally, the gold rates fell by 0.54% to $ 1,241.40 an ounce and silver by 0.95% to $15.67 an ounce in New York in yesterday’s trade. In the national capital territory Delhi, gold of 99.9% and 99.5% purity tumbled by Rs 180 each to Rs 29,400 and Rs 29,250 per 10 grams, the lowest since 5 August. In line with gold, silver ready went down by Rs 25 to Rs 37,775 per kg and weekly-based delivery slumped below the Rs 37,000-mark by falling Rs 215 to Rs 36,900 per kg, PTI said in a report.
The issues related to tax evasion by converting unreported money into gold, other precious metals spiked throughout the country after Narendra Modi announced a first of a kind massive currency replacement — note ban — in order to eliminate black money out of the system, scrapping higher denomination currency notes of Rs 500 and 1,000, which accounted for about 86% of the currency in circulation.