Gold and silver slump
Gold prices failed to hold on to the rally they saw on Thursday, October 19, and fell on Friday, October 20. Gold was down 0.74% on Friday and ended the day at $1,278.6 an ounce. Among other precious metals, silver also joined gold in its drop, falling 1% to end at $17.1 an ounce. Platinum rose marginally by 0.1% to close at $924.4 per ounce. Palladium jumped 1.8% and had a 30-day trailing gain of 6.6%. Palladium ended at $971.3 per ounce.
The world’s number two buyer of gold saw a wholesale gold price fall in terms of domestic currency as the festival of Diwali came to an end. The retailers in the country reported a 30% drop in jewelry sales as compared to sales during last year’s festivities.
Imports in India
Besides that, the Indian government had added new restrictions on gold imports by requiring proof of domestic use for new shipments. It’s estimated that gold has been entering the country by way of countries like South Korea and Indonesia. India has free-trade agreements with these countries. According to data compiled by the World Gold Council, the country saw gross inflows of 648 tons last year.
The SPDR Gold Shares (GLD) was unchanged on Thursday, October 19 for the fourth straight day. The mining stocks that saw a slump in their price along with silver include Kinross Gold (KGC), Cia De Minas Buenaventura (BVN), Coeur Mining (CDE), and Pan American Silver (PAAS). These four stocks were down 3.3%, 0.83%, 0.72%, and 0.35%, respectively.