Gold prices fell to Rs 30,590 per 10 g on Friday from Rs 30,700 per 10 kg the previous day, despite lakhs of Indians flocking to jewellery shops to invest in the metal on Dhanteras, which marks the beginning of the Diwali festival. The cost of silver, however, remained unchanged at Rs 42,700 per kg amid demand from coin makers, PTI reported.
The decline in gold prices was attributed to weak global cues – it fell to $1,265.90 an ounce in international bullion markets. However, the prices of the precious metals have surged from those during Dhanteras last year – gold prices rose by Rs 4,360 (16.6%) and silver by Rs 7,290 (20.58%).
Experts had said this Dhanteras was a good one to invest in the precious metals, with the domestic equity market moving towards record highs and India's growth outlook looking strong. Over the past year, gold prices rose by 20%, according to The Economic Times. Moreover, with the global economy slowing down, gold is a safe long-term asset for investors, having given consistent returns of 15% over the past 15 years.