Gold, silver hit multi-year lows


Gold price extended its drop to a four-year low on Friday as the price fell by 1.67 per cent in a single day and was traded at Rs 47,200 per tola in the domestic market, tracing the downtrend in the global market.

Bullion price is fixed as per the international market rates in the domestic market. However, a huge drop in imports was observed last year due to subdued demand from jewellers in the domestic market, as per jewellery entrepreneurs.

As compared to the price of Thursday, gold price slumped by Rs 800 per tola in a single day on Friday. The last time gold was traded at the current level was back in August 7, 2011 when it was priced at Rs 46,604 per tola.

Gold price has been tumbling due to the strengthening of the US dollar in expectation of a US interest rate hike. International media have reported that investors have been dumping gold on expectations that the Federal Reserve will soon raise interest rates amid a strengthening economy.

“Reports on Thursday showed an index of US leading economic indicators rose more than forecast in June as jobless claims fell to a four-decade low,” The Telegraph, UK reported. As compared to the price set on Thursday, the bullion price tumbled by $15 per ounce and was fixed at $1,084 per ounce in the international market on Friday.

Likewise, silver price also dropped by five rupees in a single day and was traded at Rs 660 per tola, which is a five-year low. The last time silver was traded at a price lower than the current price was on June 13, 2010.