Gold prices today fall for third day, silver rates drop1 min read . Updated: 08 Oct 2020, 04:39 PM IST
- Gold prices have corrected sharply from August levels
- Silver too has fallen sharply from its record highs
Gold and silver prices in India today edged lower tracking muted global rates. On MCX, December gold futures edged 0.15% lower at ₹49,971 per 10 gram, extending losses to the third day. Silver futures on MCX dipped 0.23% to ₹60,280 per kg. In the previous session, gold had tumbled ₹500 per 10 gram while silver had declined 0.4%.
In global markets, gold prices were almost unchanged today on renewed hopes for US stimulus. Spot gold was little changed at $1,886.69 per ounce, after surging as much as 1.1% in the previous session. The dollar index was steady against rivals after declining overnight.
Among other precious metals, silver was steady at $23.83 per ounce, platinum was up 0.1% at $865.21, while palladium was flat at $2,352.18.
"Gold has support at $1840 but it is required to break $1920 to trigger major rallies in the counter. An unexpected drop below $1840 is a signal of weakness," said Geojit Financial Services. Gold is looking for a direction as market sentiments seen subdued over the rising confusion on US stimulus package, it added.
The outlook for US stimulus improved after President Donald Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals.
Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement.
Minutes of the US Federal Open Market Committee’s September 15-16 meeting released on Wednesday showed some U.S. central bankers sought further debate on the future of the Federal Reserve’s asset purchase program when they met last month, signaling they’d be open to altering or increasing bond buying going forward.
Gold, which surged 30% through the first eight months of 2020, lost momentum in September as the dollar gained. Prices have been rockier this week.
Analysts say that gold is likely to remain supported at lower levels ahead of the US election and prospects more stimulus. And potential headwinds for gold include a slowdown in demand for the metal from central banks and a dollar that proved resilient in September. (With Agency Inputs)