Home / Markets / Commodities /  Gold prices today fall, a day after Diwali, silver rates slide
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Gold and silver rates in India declined today after a sharp jump in the previous session. On MCX, gold futures were down 0.03% to 47540 per 10 gram while silver declined 0.6% to 63741 per kg. In the Diwali Muhurat session on Thursday, gold had jumped 600 while silver had surged 1,800 per kg.

In global markets, gold was steady today at $1,792.74 per ounce, ahead of US monthly jobs data due later today. Among other precious metals, spot silver fell 0.1% to $23.75 per ounce while platinum rose 0.2% to $1,027.84 per ounce.

Earlier this week, US Federal Reserve this week stuck to its view that inflation would prove "transitory" though it announced announced its plan for tapering the vast bond-buying programme. Gold, which pays no interest, tends to benefit when interest rates are low as it reduces the opportunity cost of holding bullion.

The US central bank also signalled it would stay patient before raising interest rates as it held onto its belief that inflation would be "transitory" and awaited more signs of job growth.

On Thursday, the Bank of England kept interest rates on hold, surprising investors who were expecting it would be the first of the world's big central banks to raise borrowing costs after the COVID-19 pandemic.

The European Central Bank (ECB) is aware of people's fears about high inflation but is very unlikely to raise interest rates next year, ECB board member Isabel Schnabel said on Thursday.

Gold's appeal has boosted by major central banks standing pat on interest rates. The dovish tones struck by these central banks helped gold shrug off early losses of the week and put it on pace to end the week higher.

Low interest rates to spur economic growth during the pandemic have pushed gold prices to new highs over the last two years, as an easy monetary policy cuts the opportunity cost of holding non-yielding assets. (With Agency Inputs)


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