Gold and silver prices in India remained under pressure today after a brief respite in the previous session. On MCX, October gold futures fell 0.8% to ₹49,486 per 10 grams in its fourth decline in five days. Silver futures on MCX fell 2.4% to ₹58,214. per kg. In the previous session, gold prices rose 0.64% or ₹300 while silver added 1.8% or ₹1060 per kg. Gold and silver prices have fallen dramatically this week in India. For this week, gold is down approximately ₹2,300 per 10 grams while silver has plummeted ₹10,000 per kg.
Gold prices had reached a record of ₹56,200 last month.
On world markets, gold remained under pressure due to a stronger dollar, but losses were limited amid renewed hopes for more US stimulus measures. Spot gold fell 0.2% to $ 1,864.47 an ounce, extending losses to more than 4% this week. Amid other precious metals, silver fell 1.1% to $ 22.95 an ounce, platinum was down 0.3% to $ 846.72 and palladium was flat at $ 2,226.44.
The dollar index is up 1.5% this week, its best since early April. A firmer dollar makes bullion more expensive for holders of other currencies.
Gold has come under pressure this week as the US dollar is considered the preferred safe-haven asset amid renewed risk aversion in global financial markets, analysts say. Global risk sentiment has weakened as mounting virus cases, especially in Europe, have reignited concerns about severe lockdowns. But countries have so far refrained from strict measures.
Also weighing on market confidence are the delay in the US stimulus package, political disputes over the appointment of the US Supreme Court judge, mixed economic data from major economies, rising tensions between the US and the United States. China and Brexit uncertainty, Kotak Securities said.
Gold also weakened because ETF investors also chose to stay on the sidelines.
“Gold has broken below the key $ 1900 / oz level and may remain under pressure unless we see a substantial correction in the US dollar,” Kotak Securities said.
Asian stock markets were mostly higher today after a higher finish on Walll Street as investors weighed the possibilities for a new US stimulus package.
In the United States, Democrats are crafting a new $ 2.4 trillion stimulus bill to try to break out of the stalemate with Republicans. Central banks have rolled out massive stimulus and slashed interest rates to near zero to counter the economic damage from the pandemic, helping unprofitable gold jump more than 20% this year.
Up to $ 380 billion from the latest major coronavirus aid package from the U.S. Congress is unused and could help households and businesses if lawmakers approve it, Federal Reserve Chairman Jerome Powell said Thursday. , and Treasury Secretary Steven Mnuchin. (With contributions from the agency)
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