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Gold hit a 14-month low due to poor demand and shifting of investment from commodities to other investment avenues, including the dollar index and equity.
Standard gold at Zaveri Bazaar here fell below the psychological barrier of Rs 27,000 per 10g and closed at Rs 26,870 per 10g on Friday. Similarly, silver fell by Rs 400 to settle on Friday at Rs 41,000 a kg.
This level of gold was earlier seen on July 19, 2013, when it had closed at Rs 26795 per 10g. The present level of silver was earlier seen at Rs 40,850 a kg, 14 weeks earlier on June 6.
“The decline is a blessing in disguise for consumers. A sharp fall in bullion was not seen in the past three years,” said Gnanasekar Thiagarajan, director, Commtrendz Research.
The buying season in global markets will start with Christmas and continue till Mothers’ Day in February 2015.
