The prices of gold and silver fell today in the Indian markets following a moderate global trend. On MCX, gold futures fell 0.15% to ₹50.425, while silver futures fell 0.35% to ₹62,832 per kg. This is the second day of falling gold prices in three days. In the previous session, gold prices rose 1.4% or ₹700 per 10 grams, while silver rates had risen 3.3% or ₹2,000 per kg. On Monday, gold prices plummeted ₹2,500 per 10 grams amid the hype for the covid vaccine.
In global markets, gold prices rose bit by bit today in hopes of further stimulus measures, as the rise in coronavirus cases in many parts of the world clouded the economic outlook. But optimism about the development of the covid vaccine limited the gains. Spot gold was up 0.2% to $ 1,879.31 an ounce, while silver was up 0.2% to $ 24.26 and platinum was down 0.1% to $ 881.98.
A weaker US dollar also supported gold. The dollar index was down 0.11%, making the precious metal cheaper for holders of other currencies.
Excitement over the prospects for a coronavirus vaccine after Pfizer announced the results of the initial test has boosted global risk sentiment and had sent safe-haven assets like gold into the queue earlier this week. But analysts say gold is likely to find support at lower levels, as the coronavirus injection still has several hurdles to overcome, while there are concerns about the transition of power to President-elect Joe Biden and the virus’ resurgence.
“Gold’s strong rally in recent days made it vulnerable to profit-taking, while progress on the vaccine front was the trigger. However, the price has managed to maintain a support close to $ 1,850 / oz. and we could see some more recovery as global challenges are far from over, “Kotak Securities said in a note.
“Gold ETF flows indicate investors are unsure of price direction. Concerns about US fiscal stimulus are also weighing on the price of gold amid a greater possibility of a divided US Congress. Gold price support is increasing virus cases in Europe and parts of the US forced authorities to impose stricter restrictions. The longer they are in place, the greater the negative impact on the economy. Mixed economic data from major economies also highlight persistent challenges, “the brokerage said.
Back in India, analysts expect the recent drop in prices to boost demand for gold ahead of Dhanteras and Diwali. By August, gold had hit a record of ₹56,200.
The last tranche of Indian government gold sovereign bonds is currently open for subscription. The RBI has set an issue price at ₹5.177 per gram of gold. (With contributions from the agency)
.
