Gold and silver prices in India today gave up early gains to move lower, extending the sharp decline of the previous session. On MCX, gold futures fell 0.14% to ₹50,400 for 10 grams, while silver futures fell 0.5% to ₹61,011 per kg. In the previous session, gold had fallen 2.4% or ₹1,200 per 10 grams, while silver had plummeted 9.3% or ₹6,300 after a nightly drop in world rates.
In global markets, gold prices rose today shortly after falling more than 3% in the precious session. Spot gold was up 0.3% today at $ 1,918.20 an ounce. In the previous session, gold had fallen to a more than a month low of $ 1,882.70 as the US dollar soared to a nearly six-week high. A firmer dollar makes bullion more expensive for holders of other currencies.
Analysts say gold was bolstered today by economic concerns over new coronavirus-induced restrictions in many parts of Europe. The dollar index also fell against its rivals, after rising to its highest level in more than a month on Monday.
Gold, which is often used as a safe store of value during times of political and financial uncertainty, is up nearly 26% this year.
Among other precious metals, silver was up 1.1% today at $ 25 an ounce, platinum was up 0.6% at $ 886.20 and palladium was up 0.5% at $ 2,285.44.
Shares and other assets, including gold, were liquidated on Monday due to concerns about renewed lockdown measures in Europe, as well as the inability of the United States to agree to a fiscal stimulus that would support millions of unemployed. Analysts say investors also turned to the safety of the US dollar, as the opening of a vacancy on the US Supreme Court fueled concern over the increasingly contentious US presidential elections.
Additional focus may also be on virus-related development alongside development related to US-China tensions, Brexit negotiations, and US fiscal stimulus.
US Fed Chairman Jerome Powell said Monday that the US central bank remains committed to using all the tools at its disposal to help the US economy recover. from the hit of the coronavirus pandemic. (With contributions from the agency)
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