Gold prices today tumble ₹1,500 per 10 gram, silver rates crash ₹6,0001 min read . Updated: 21 Sep 2020, 10:10 PM IST
- Gold prices in India have remained choppy in recent weeks
- Jewellers hope that the upcoming festive season could give some push to demand for gold
Gold and silver prices tumbled in India today following a global selloff in precious metals and as well as equities. On MCX, gold futures tumbled 2.7% or ₹1,500 to ₹50,300 per 10 gram while silver futures crashed 9% or ₹6,000 to ₹61,802 per kg. In the previous session, gold had risen 0.52% while silver had edged 0.2% lower. Gold prices in India have remained choppy in recent weeks after hitting a record high of over ₹56,000 last month.
In global markets, spot gold tumbled the most in almost five weeks, falling below $1,900 an ounce as a strengthening dollar diminished demand for commodities.
Spot gold declined as much as 3.5% to $1882.51 an ounce and silver plunged as much as 11% as the Bloomberg Dollar Spot Index headed for its biggest gain since June. Stocks tumbled amid concerns that economies will be hit by tighter coronavirus restrictions.
"Gold should be trading higher on safe-haven demand but it's kind of a repeat back like in the spring when the market sell-off comes, market participants have been selling off assets across the board," said Bob Haberkorn, senior market strategist at RJO Futures, told Reuters.
Wall Street's main indexes hit their lowest levels in nearly seven weeks today.
Gold traders are looking ahead to more clues on Fed's monetary policy as Chairman Jerome Powell will appear before Congressional committees later this week.
A surge in coronavirus cases in many parts of the world has forced authorities to gradually introduce new restrictions to curb surging infections.
Back in India, jewellers hope that the upcoming festive season could give some push to demand for gold which has remained muted amid the covid crisis. Dealers offered discounts for a fifth straight week amid weak physical demand.
"Gold may remain choppy amid lack of clear cues and mixed trade in equities and US dollar," says Kotak Securities. It recommends a buy-on-dips strategy for gold, citing global uncertainty and loose monetary policy stance of major central banks.