Gold prices today fall, a day after surging ₹1,200; silver rates rise1 min read . Updated: 05 Jan 2021, 09:42 AM IST
- In the previous session, gold had surged ₹1,200 per 10 gram while silver had jumped ₹2,000 per kg
Gold and silver prices were mixed today in Indian markets, a day after both the precious metals had surged following a global rally. On MCX, gold futures were down 0.03% to ₹51,410 per 10 gram after a ₹1,200 surge in the previous session. Silver futures were up 0.48% to ₹70,373 per kg. In the previous session, silver had surged about ₹2,000 per kg.
In global markets, gold prices eased today after after 2.5% jump in the previous session. The US dollar strengthened today from a two-year low ahead of Senate runoff elections in Georgia. The dual runoff elections in Georgia will decide which party controls the US Senate. A win by Democrats would make it easier for President-elect Joe Biden to push policies.
Spot gold was down 0.2% to $1,938.11 per ounce. Among other precious metals, silver was little changed at $27.22 an ounce while platinum lost 0.6%.
The UK has announced a new national lockdown to contain a surge in COVID-19 cases, while New York registered its first case of the more contagious, 'UK' variant of stimulus.
Gold prices had surged on Monday after the dollar slipped to its lowest in over two years. Gold traders will be looking ahead to the minutes of US Federal Reserve's last policy meeting, due on Wednesday.
Gold is considered a hedge against inflation and currency debasement, likely to result from large stimulus measures and lower interest rates. In 2020, gold had registered gains of about 25% as central banks and governments announced large stimulus measures to protect the economy from the impact of coronavirus.
Prior to Monday's rally, gold prices had remained in narrow range over two weeks. "Gold prices have recovered from support levels amid growth concerns on worries over new strain of corona virus spreading. The weaker dollar also boosted buying in gold prices with stimulus announcements from US. The rising COIVD-19 cases across world and lockdown measures in UK and Europe may keep risk premium high in gold prices," HDFC Securities said in a note. (With Agency Inputs)