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Domestic market demands surge as gold prices crash for the first time in last 20 years
After giving some fabulous returns for nearly a decade, the gold prices have posted their biggest two-session drop in 30 years on 15 April 2013. Gold has become one of the ways of saving, but now this safe avenue has turned into a loss making investment for many.

For Indians, this gold rate crash is like a boon, because the marriage season is coming up as buying gold in marriages is an old tradition. The Navratri festival, which is believed to be an auspicious week in Hindu mythology for purchasing precious metals, is also going on.

Amrita Mashar, senior analyst at Commodity Online India told this citizen journalist , “The physical buying of gold has increased due to this crash in gold price. But those who have invested in ETF will look forward for a fund flow.” She added: “The gold price can dip to Rs 23,000 per 10 gram, but there are no expectations that the price of gold will rise again.”

Julian Jessop, head of commodities research for Capital Economics told ibtimes: “The trigger for the slump in the gold price since Friday appears to have been aggressive selling by speculative traders, rather than any change in the fundamental drivers.” He added: “Gold has also been caught up in the broad-based weakness in commodity markets, including oil and industrial metals, due to softer U.S. and Chinese economic data.”

Silver also recorded a steep fall of Rs 2,500 at Rs 50,100 per kg. Silver has seen a steady descent by Rs 2,500 to Rs 50,100 per kg and weekly-based delivery by Rs 2,745 to Rs 48,780 per kg. Silver coins also dropped by Rs 2,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces, reported the Times of India.

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