54 kg of gold worth Rs 41 crore, Rs 10 crore in cash seized from abandoned vehicle in MP
The seizure was made in the wee hours of Friday on a tip-off.
Gold futures plunged around 20 per cent from the record highs as the bullion market which peaked at the height of the pandemic last year has come to a halt.
The fall in gold prices comes at a time when hopes of economic recovery in post-pandemic era is gaining momentum. The recent decline comes largely on the back of high yields in US bonds.
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On the Multi Commodity Exchange, gold futures have dropped in eight of the past nine trading sessions to hit the 10-month low levels.
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The April contract of gold futures on the MCX was at Rs 44,458 per 10 gram, lower by Rs 83 or 0.19 per cent from its previous close. It is Rs 11,742 lower than the record high of Rs 56,200 reached in August 2020.
“After having a dream run in 2020, the yellow metal has been falling for the past few months losing more than 20 per cent in value from the highs witnessed in August 2020,” Nish Bhatt, Founder & CEO of Millwood Kane International, an investment consulting firm said.
He noted that the fall in gold prices in the domestic market is in line with the international market prices post comments of the US Fed Chairman on inflation and bond yield. “Comex gold prices fell due to the rising treasury yields that make holding gold more expensive, the strengthening of the dollar also makes gold buying expensive. Heavy outflows from Gold ETFs are also one of the reasons for the softness in gold prices,” he added.
Analysts expect gold prices to remain sideways in the short-term as vaccination drive across the globe picks up the pace which will lead to full normalcy in economic activities.
“The expectation of a rise in inflation due to excess liquidity globally may help gold prices in the medium to long-term,” Bhatt said.
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