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Two important reasons behind the falling gold prices in India

The Gold prices have been continuously falling in the International markets for few sessions. It has declined by nearly 5 percent since the beginning of the year.

Let’s talk about the February session as well, the precious metal kept on falling by 2.77 percent during the last week ended on February 6.

In the global market, the US dollar fell down against the Japanese Yen for the first time in the last eight days. The gold gained a tad to settle at $1,810.60 per troy ounce on the back of weakness in the US dollar.

As per the gold analysts, the precious metal can also fell down by another $100. Although, technically, the data charts show very good support in the range of $1,775-1,780.

The US dollar is gaining against most of the currencies and also the investors have been preferring riskier assets. These are the two most important reasons behind falling gold prices in India.

Gold can have a resistance around 1,825 levels if it anyhow manages to rise above its current prevailing level.

On February 8, 2021, the gold was sold at Rs 4,739 per gram in the Indian market. It has fell down from its previous close of Rs 4,875 per gram of February 1,2021.

Also, the 22-carat gold was sold at Rs 4,578 against the previous close of Rs 4,709 in the last week.

So far, the gold prices have exceeded Rs 5,600 per gram previously on the back of the positive global cues. This was the then current prevailing prices on August 2020.

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