Gold prices today fall for fourth time in five days, silver rates drop2 min read . Updated: 09 Sep 2020, 09:08 AM IST
- Gold prices in India are down about ₹5,000 per 10 gram in about a month
- Silver rates have also seen a correction of about ₹10,000 per kg
Gold and silver prices edged lower in Indian markets today. On MCX, gold futures slipped 0.4% to ₹51,140 per 10 gram - fourth fall in five days. Silver futures on MCX declined 0.75% to ₹67,982 per kg. In the previous session, gold futures had risen 0.6% while silver had gained 0.55%. Gold prices have been volatile since hitting record highs of ₹56,200 last month. From that levels, gold is now down about ₹5,000. Silver too has seen a sharp correction after coming close to ₹80,000 per kg level last month.
MCX, India’s largest commodity derivatives exchange, has said that it witnessed an all-time record delivery in silver contracts via the exchange platform. A total of 139.965 tons of silver, valued at ₹937 crore, has been delivered in MCX silver contracts expiring in August/September, the exchange said.
In global markets, gold rates were flat today as a stronger US dollar offset the boost in safe-haven appeal from weak global equities. Spot gold was little changed at $1,929.30 per ounce, after it fell to near a two-week low of $1,906.24 in the previous session.
Among other precious metals, silver fell 0.2% to $26.66 per ounce while platinum was steady at $901.29..
The US dollar rose to a near one-month high against a basket of other six currencies as the pound dropped to a six-week low on renewed worries about Brexit. The US dollar was also boosted amid waning risk appetite. A stronger greenback makes gold more expensive for holders of other currencies.
On the other hand, overnight the Wall Street sank for the third consecutive day.
"Weighing on gold price is gains in US dollar index, slack ETF activity and weaker consumer demand. British Pound has come under pressure amid fresh rise in virus cases and increasing uncertainty about post Brexit terms negotiations," Kotak Securities said in a note.
"Global virus cases continue to rise with India reaching the second position in the tally and fresh cases being reported in parts of Europe. Tensions between US-China rose further as President Donald Trump said he intends to curb the US economic relationship with China. Also supporting gold is Fed’s dovish stance and mixed economic data which has kept bond yields low," the brokerage said.
"We expect buying interest in gold to emerge at lower levels as increasing challenges to global economy may improve its safe haven appeal," it added.
Gold investors are awaiting monetary policy strategy from European Central Bank policy meeting, due on Thursday. The US Federal Reserve's next meeting is scheduled for next week. (With Agency Inputs)