Gold and silver prices fell today in Indian markets amid muted global signals and a strong rupee. On MCX, October gold futures fell 0.35% to ₹51,320 per 10 grams, while silver futures fell 1.3% or ₹900 to ₹70,000 per kg. In the previous session, gold futures had fallen 0.44% while silver futures had risen 0.4%. Gold prices in India have been volatile since prices hit a record high of ₹56,200 until August 7.
In global markets, gold prices rose today, supported by a weaker US dollar. But gains were subdued as strong US manufacturing data boosted global risk sentiment. Spot gold rose 0.1% to $ 1,971.07 an ounce, while US gold futures were flat at $ 1,978.90.
Among other precious metals, silver gained 0.3% to $ 28.25 an ounce, while platinum was up 0.3% to $ 943.63.
“Gold rallied sharply after taking support near the $ 1900 / oz level, however momentum is weakening and we could see a choppy trade if there are no new triggers. Therefore, one should expect a corrective decline sooner. to create new long positions, “Kotak Securities said. in a note.
A weight on the price of gold is persistent strength in the US and world equity markets, slow ETF activity and weaker consumer demand, the brokerage added.
The dollar index held steady at nearly two-year lows as investors bet that interest rates in the United States would remain low for longer under the new monetary policy framework outlined by the Fed chief last week. pass.
Low interest rates reduce the opportunity cost of having gold that does not perform, while a weak dollar makes the yellow metal cheaper for holders of another currency.
Data released Tuesday showed US manufacturing activity accelerated to a nearly two-year high in August amid a surge in new orders.
Gold prices have risen roughly 30% so far this year as governments and central banks around the world implemented an unprecedented stimulus to prop up economies amid the coronavirus pandemic.
White House Chief of Staff Mark Meadows said Senate Republicans are likely to accept his COVID-19 relief bill next week that offers $ 500 billion in additional federal aid.
In India, the last tranche of gold sovereign bonds is open for subscription, closing on September 4. The issue price has been set at 5,117 per gram. Those who order online and pay online get a discount of ₹50 per gram. The minimum investment allowed is 1 gram of gold. (With contributions from the agency)
.
