Gold and silver prices continued to decline in Indian markets for the third day in a row amid a strong rebound in risk in equity markets. On MCX, gold futures fell 0.21% to ₹48,485 per 10 grams, while silver futures were down to ₹59,460 per kg. Gold and silver prices in India had fallen dramatically for the past two days. In the previous session, gold futures had slumped ₹900, extending Tuesday ₹750 drop. The silver had collapsed ₹800 per kg in the previous session, after Tuesday ₹1,600 drop.
In global markets, gold rates remained subdued, supported by a weaker dollar, but a strong appetite for riskier assets kept bullion near a four-month low. Spot gold rose 0.1% to $ 1,809.41 an ounce after falling to $ 1,800.01 the previous day, its lowest since July 17.
The dollar index was down 0.14% today against a basket of currencies, making bullion cheaper for other currency holders. Among other precious metals, silver rose 0.2% to $ 23.29 an ounce, while platinum fell 0.2% to $ 959.64.
Gold prices have fallen as positive news about the COVID-19 vaccine and the easing of political uncertainty from the United States prompted investors to seek riskier assets, Geojit Financial Services said in a note.
On Wall Street, Dow surpassed the 30,000 level overnight after the transition formally approved by US President-elect Joe Biden and positive developments around a possible COVID-19 vaccine sparked a rally in stocks. global. Asian markets were mostly higher today.
“Equity markets remain on a firmer footing, reflecting upbeat risk sentiment. While economic indicators indicate economies are grappling with virus-related restrictions, market nerves have calmed with reports. of success in vaccine trials, “Kotak Securities said in a note.
“Companies such as Pfizer, Moderna, AstraZeneca have reported that their vaccine trials have been successful, which has driven market expectations that a vaccine will soon be found that can help control the outbreak. Despite general optimism, there are challenges in the form of mass production and distribution of the vaccine, “added the brokerage.
Gold ETF investors continued on the sidelines. Holdings of SPDR Gold Trust, the world’s largest gold-backed gold ETF or exchange-traded fund, fell 1.1% to 1,199.74 tonnes on Tuesday from 1,213.17 tonnes on Monday.
Gold prices have been under pressure as COVID-19 vaccine developments and recent US manufacturing data bolstered investors’ hopes for a rapid economic recovery, says Jigar Trivedi, research analyst at Fundamental Commodities, Anand Rathi Shares & Stock Brokers.
Investors also welcomed Joe Biden’s move to recommend former Fed chair Janet Yellen as Treasury secretary, he added.
Gold traders will await the minutes of the latest meeting of the US Federal Reserve’s rate setting committee, which will be held later today. (With contributions from the agency)
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