Covid-19 vaccination news impacts gold price say manufacturers; price dips to Rs 37,000 per sovereign

'Covid-19' vaccination trials impacts by reducing gold price to Rs 37,000 per sovereign: Manufactures say they witness 100 Kilos of gold business everyday


Coimbatore: Industrialists said that the increasing positive news about 'Covid-19' vaccination trials has made an impact on the gold prices. This has made the price of one sovereign gold to reduce to Rs 37,000 after a very long time. This has also helped to witness 100 kilograms of gold business to take place each day at Coimbatore.

Post 'Covid-19' outbreak the price of gold continued to witness abnormal price hike. More investments made on gold across the globe by both government and private bodies was said to be one of the main reasons. This very badly hit the entire gold jewellery industry sector. In Coimbatore recently gold prices made history by crossing Rs 43,000 per sovereign (8 grams) which pushed this sector to near crisis.

After a few days the price of gold slowly started to reduce and continued to oscillate between Rs 39,000 - Rs 38,000 range for many months. Now the price of gold has reduced to Rs 37,000 range per sovereign. This has given a relief to both the customers and manufacturers.

Coimbatore Gold Jewellery Manufacturers Welfare Association, President, B. Muthu Venkatram said, "More than 1 lakh people get employment opportunities in Coimbatore city by the gold industry. Abnormal price hike of gold pushed this sector to crisis since only 20% of the usual business was witnessed. After hitting a steep hike of Rs 43,000 per sovereign, gold price started to reduce and at present it has started oscillating in the Rs 37,000 range. The sudden downfall in the price is due to more positive news continuing in the market regarding 'Covid-19' Vaccination trials and introduction."

He said "The price reduction has given a relief to the customers, but this is only temporary. Once the vaccination is introduced in the market. More people will come out confidently and start making more investments on gold. If this happens again the price of gold will start witnessing an upward trend. Usually each day 200 kilos of gold business will take place in Coimbatore city. Due to the price reduction, now the overall business is getting better which has helped to witness 50% of the usual business(100 kilos of gold each day)."

Price of Gold (One sovereign, 8 grams) witnessed at Coimbatore market

November 18 - Rs 39,200

November 19 - Rs 38,880

November 20 - Market holiday

November 21 - Rs 39,120

November 22 - Market holiday

November 23 - Rs 38,960

November 24 - Rs 38,040

November 25- Rs 37,704

November 26(Today) - Rs 37,800

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