As Brexit drove up gold prices in India to a record level on Friday, Indian jewellers and gold stockists succeeded in bringing it down to a 26-month low on Saturday, reported the Press Trust of India. The gold price fell by Rs. 485 to Rs. 30,400 for 10 gram in India's markets, while internationally it rose more than 5 percent.
The prices prevalent in the market were too high for the jewellers to initiate any purchases, while for the stockists the high prices prompted a sell off. These counter reactions brought down the prices, said Indian traders.
On the question of how low gold could fall in India, they noted that in some ways the growth in international markets was containing the gold prices in the country from a free fall.
PTI said that international gold price balanced out at $1, 317.94 an ounce from the $1,358.54 to which it peaked on Friday. It was Rs. 30,885 for every 10 gram in Indian markets.
On Saturday, however, 99.9 and 99.5 finesse gold rates dropped to Rs. 30, 400 and Rs. 30,250 per 10 gram, respectively. Sovereign (gold weighing 8 gram) too fell by Rs. 100 to Rs 23,300 per piece.
The other precious metal, silver, which was up by 2.6 percent to $17.73 an ounce in New York, inched further internationally. In India too, silver (ready) rose by Rs. 90 to Rs. 42,390 per kilogram, driven by purchases from industrial establishments and coin makers, said PTI. Silver (coins), however, held steady at Rs. 72,000 for 100 pieces.