Gold prices today fall again after slumping ₹600 per 10 gram1 min read . Updated: 03 Jun 2020, 10:41 AM IST
- The rally in stock markets has taken some shine away from gold in past few sessions
- Silver also gave up some of its recent gains
Gold prices in India fell today, extending sharp losses of the previous session. On MCX, August gold futures fell 0.20% to ₹46,470 per 10 gram after tumbling ₹556 in the previous session. Tracking gold, silver also edged lower. On MCX, July silver futures fell 0.51% to ₹48,830 per kg. Silver had declined about ₹1,500 in the previous session. An appreciation of rupee against US dollar also put pressure on domestic gold prices. Gold prices in India include 12.5% import duty and 3% GST.
In global markets, gold prices dipped today as equity markets continued to rally on optimism over reopening of economies. Spot gold was down 0.2% at $1,722.93 per ounce. Among other precious metals, platinum inched up 0.1% to $839.52, while silver fell 0.6% to $17.98. However, protests in the US and a soft dollar capped the downside for gold.
"Global risk appetite seems upbeat amid optimism over reopening of economies, signs of stabilization in global factory activity and hopes of more stimulus from major economies despite lingering worries over US-China and worsening social unrest in US," Kotak Securities said in a note.
Gold is often seen as an alternative investment during times of political and financial uncertainty. The US dollar index, which measures the greenback against six other currencies, was down 0.17% to a two-month low of 97.49. A softer dollar makes gold cheaper for holders of other currencies.
The rally in equity has taken some shine away from gold in past few sessions as businesses continue to reopen around the world following coronavirus shutdown. Hopes of additional stimulus have also pushed global stocks to a three-month high. In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday.
Central banks and governments around the world have unleashed huge quantities of stimulus to cushion their economies from the coronavirus pandemic.
Still then, investors continued to put in money into gold ETFs. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.1%to 1,129.28 tonnes on Tuesday.
After a long gap, spot gold markets in Delhi reopened on Monday, Press Trust of India reported. (With Agency Inputs)