Gold plunges from Thursday’s peak

Staff Reporter

KOLLAM: After registering a record Rs.10,200 a sovereign on Thursday, the price of gold dropped to Rs.9,720 in the retail gold market on Saturday.

On Thursday, the price went up by Rs.240 a sovereign. On Saturday, the price plunged by Rs.480.

Buyers are confused by the fluctuation in such a short span of time. S. Abdul Nazar, spokesman for the All-Kerala Gold and Silver Merchants’ Association, said the retail gold market had been dull since Thursday.

Neither the steep climb nor the plunge in price had attracted buyers.

Despite indications of a rise again, buyers appear to be waiting for prices to stabilise.

Strong dollar

Mr. Nazar said the strengthening of the dollar against the rupee was one of the causes for the record price.

On Thursday, the price of gold in international market was $910 an ounce (roughly Rs.12,000 a sovereign).

Earlier in the year, the prices had crossed $1,000 an ounce and yet the retail price in India stood well below Rs.10,000 a sovereign. The highest price during that phase was Rs.9,960, Mr. Nazar said.

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