Prices of Commodities Decreased Considerably; Gold Prices Decreased to 15-Month Low

The prices of wide range of commodities decreased considerably in the second week of April 2013, marking the cooling down of inflation to just a little below 6 percent.

While the oil companies had deducted the petrol prices by over 1 Rupee, the price of gold, on the other hand, fell to 15-month low at 26500 Rupees per 10 gm. Gold dropped to biggest two-day in 30 days. Silver dropped 10 percent; Aluminium fell down 7 percent and metals as well as palm oil showed weakest prices in several months.

Market observers explained that the prices of gold will fall further to 25000 Rupees per 10 gm because the investors would prefer equities than gold.

Decrease in the prices of gold is important because it will lower the import bill of UPA government on account of the gold.