Gold prices in India fell nearly 5 percent to Rs 26,450 per 10 grams on Monday, the lowest in two years since April 2011. It was a huge jolt to the financial firms giving gold loans. The prices of the yellow metal dropped below USD 1400 per ounce and Silver by 10.52 percent to USD 23.13 an ounce in the international market.
The prices sharply fell by Rs 1300 per 10 grams today, bringing no profit for the financial institutions. Meanwhile, the Silver prices fell by 9 percent. Silver plunged by Rs 2,100 to Rs 48,000 per kg.
The main reason for the fall is the rise of the dollar in the international market. It could be suggested that the prices of the yellow metal could be in the Rs 23,000-29,000 range.
Gold prices had recorded the biggest ever fall of Rs 1,250 per ten grams to hit one-year low of Rs 28,350 on Saturday.