Home >Markets >Commodities >Gold prices today fall sharply, down 1,000 in 2 days

Gold prices in India edged lower today for the second day after hitting a record high in the previous session. On MCX, gold futures were were down about 500 to 47,785 per 10 gram, after sliding 500 in the previous session. Gold had hit a record high of 48,982 in the previous session but could not sustain gains and settled lower. Silver futures on MCX were down 700 to 48,750 per kg after slumping 900 in the previous session.

An improvement in global risk sentiment and sharp gains in rupee put pressure on domestic gold prices. Indian rupee today surged to 3-month high of 75.01 against the US dollar.

In global markets, gold prices came off recent highs after positive coronavirus vaccine developments and US data slightly improved risk sentiment. Focus now shifts to the monthly US jobs report due later today and it will be closely monitored by gold traders today.

Spot gold fell 0.2% to $1,767.11 per ounce, after touching $1,788.96 on Wednesday — its highest since October 2012. US gold futures today fell 0.2% to $1,777.30.

Among other precious metals, platinum fell 0.2% to $813.94 and silver rose 0.2% to $17.97.

"Dips will find buying support until 47000 holds and prices will again bounce back towards 48500/49000 levels," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

Manufacturing activity in the US rebounded in June while similar surveys from China, Germany and France all pointed to a recovery in factory activity. An early trial of an experimental vaccine from Pfizer Inc. and BioNtech SE showed promise and was found to be well tolerated in early-stage human trials.

On the other hand, gold was supported on the downside by US-China tensions and hopes of more stimulus from central banks. Traders also monitored minutes of the Federal Reserve’s June meeting, which revealed that various participants viewed the economy needing support “for some time."

"Escalating geopolitical tensions, concerns of a quick global economic recovery and a weak US dollar will continue to lift the safe haven demand and thus prices of gold. However, investors may take a cautious stance ahead of the key US employment data scheduled later during the day," said Hareesh V, Head commodity Research at Geojit Financial Services.

"As long as prices stay above $1710 (London spot) we can expect the bullish outlook to continue in the counter. The immediate downside reversal point is $1664," he added.

Overnight, the US House of Representatives passed by unanimous consent a bill imposing sanctions on banks that do business with Chinese officials involved in cracking down on pro-democracy protesters in Hong Kong. (With Agency Inputs)

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