Gold prices fall ₹1,000 per 10 gram in just two days, silver rates tumble1 min read . Updated: 09 Jan 2020, 05:03 PM IST
- Gold prices had hit new highs over the past week
- Silver rates also fell sharply today
Gold and silver prices fell for second day in India today as fears ebbed of a further escalation of tensions between the US and Iran. On MCX, gold futures prices were down 1% to ₹39,725 per 10 gram, after sliding nearly ₹600 in the previous session. Silver prices also tumbled today, with futures on MCX sliding 1.4% to ₹46,713 per kg.
In global markets, gold prices fell from their near 7-year highs after US President Donald Trump's comments eased fears of further hostilities between America and Iran. Gold futures on Comex were trading at $1,561 an ounce after surging above the $1,600 level for the first time in nearly seven years on Wednesday. Trump said Iranian missile strikes on bases in Iraq had not harmed any US troops, and that Tehran appeared to be standing down.
Iran later said it had "concluded" the attacks for now, while Foreign Minister Mohammad Javad Zarif tweeted that the country does "not seek escalation or war".
Gold may witness some profit booking as a softening of the rhetoric by the US and Iran allayed concerns of a larger military conflict, SMC Global Securities said in a note.
"Gold can dip lower towards 39,800 while taking resistance near 40,300 while silver can test ₹47,000 while taking resistance near ₹47,500," the brokerage said.
Meanwhile, the holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust fell 1.05% to 886.81 tonnes on Wednesday, it added.
Gold prices had surged to a record high of ₹41,293 per 10 gram in the previous session in India after Iran retaliated to a US drone strike that killed an Iranian military commander last week, sparking fears of an escalation in Middle East tensions.
Next on gold traders' watch: The Friday release of US jobs data by the Labor Department.
Gold had made a strong start to the year driven by the rising hostilities in the Middle East. Prices had new highs over the past week in India amid a global rally and depreciation in rupee against the US dollar. India imports most of its gold requirement. Prices in domestic markets include 12.5% import duty and 3% GST.
Gold prices had surged about 25% in domestic markets last year, lifted by a global rally amid US-China trade tensions, Brexit and the US Federal Reserve's monetary policy easing. (With Agency Inputs)