Gold prices today fall again, down ₹1,800 in 3 days; silver rates drop2 min read . Updated: 25 Nov 2020, 09:39 AM IST
- Positive developments around a possible COVID-19 vaccine sparked a rally in global equities, denting gold prices
- Gold ETF investors continued to remain on the sidelines
Gold and silver prices continued to drift lower in Indian markets for third day in a row amid a strong risk-on rally in equity markets. On MCX, gold futures fell 0.21% to ₹48,485 per 10 gram while silver futures declined to ₹59,460 per kg. Gold and silver prices in India had fallen sharply over the previous two days. In the previous session, gold futures had slumped ₹900, extending Tuesday's ₹750 fall. Silver had slumped ₹800 per kg in the previous session, following Tuesday's ₹1,600 fall.
In global markets, gold rates were muted, supported by a weaker dollar but a strong appetite for riskier assets kept bullion near a four-month low. Spot gold rose 0.1% to $1,809.41 per ounce after falling to $1,800.01 in the previous day, its lowest level since July 17.
The dollar index today eased 0.14% against a basket of currencies, making bullion cheaper to other currency holders. Among other precious metals, silver rose 0.2% to $23.29 per ounce while platinum fell 0.2% to $959.64.
Gold prices have slipped as positive news on covid-19 vaccine and easing US political uncertainty made investors to look for riskier assets, Geojit Financial Services said in note.
On Wall Street, Dow broke through the 30,000 level overnight after US President-elect Joe Biden's formally approved transition and positive developments around a possible COVID-19 vaccine sparked a rally in global equities. Asian markets were mostly higher today.
"Equity markets remain on a firmer footing reflecting upbeat risk sentiment. While economic indicators indicate that the economies are coping with the virus related restrictions, market nerves have been calmed by reports of success on vaccine trials," Kotak Securities said in a note.
"Companies like Pfizer, Moderna, AstraZeneca have reported success in their vaccine trials fueling market expectations that a vaccine may be found soon which may help bring the outbreak under control. Despite the general optimism, there are challenges in form of mass production and distribution of the vaccine," the brokerage added.
Gold ETF investors continued to remain on the sidelines. Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 1.1% to 1,199.74 tonnes on Tuesday from 1,213.17 tonnes on Monday.
Gold prices have been under pressure as COVID-19 vaccine developments and recent US manufacturing data bolstered investors' hopes of a swift economic recovery, says Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers.
Investors also welcomed the move by Joe Biden to recommend former Fed Chair Janet Yellen as Treasury Secretary, he added.
Gold traders will be awaiting the minutes of US Federal Reserve's rate-setting committee's last meeting due later today. (With Agency Inputs)