Gold prices today fall for third time in 4 days, silver rates drop
2 min read 20 Jul 2020, 09:09 AM ISTSurging coronavirus cases across the world and geopolitical tensions supported goldBut weak physical demand in many parts of the world capped gains
PremiumGold prices today fell in Indian markets, tracking muted global cues. On MCX, August gold futures were down 0.12% to ₹48,910 per 10 gram, their third decline in four days. Silver also edged lower, with futures on MCX declining 0.25% to ₹52,765 per 10 kg. Gold prices in India had hit a record high of ₹49,348 per 10 gram earlier this month and since then prices have remained choppy.
In global markets, gold prices today remained steady above the key psychological level of $1,800 per ounce. Spot gold was steady at $1,808.53 per ounce while US gold futures were almost unchanged at $1,809, supported by a weaker US dollar and concerns over surging coronavirus cases around the world. Among other precious metals, platinum fell 0.2% to $836.62 and silver edged 0.1% higher to $19.33.
"Gold may witness choppy trade as market players assess virus situation as well as geopolitical issues however general bias may be on the upside amid increasing challenges to global economy," Kotak Securities said in a note.
Around the world, more than 14.4 million people have been reported to be infected by the novel coronavirus globally and 605,162 have died, according to a tally by Johns Hopkins University.
"A rise in the US China tensions and an uptick in the investment demand has underpinned the yellow metal. Going ahead, the bulls case is intact for gold but, since price is too high, buy on dips would be the best strategy for traders," said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers.
On the physical side, demand for gold remained muted in India amid surging coronavirus cases in the country. In India, dealers charged premiums of up to $2 an ounce over official domestic prices last week as compared to previous week's $3 premium, Reuters reported, amid a big fall in imports.
Gold imports into India plunged 94% during the first quarter of 2020-21 due to a significant fall in demand in the wake of the COVID-19 pandemic.
India is the largest importer of gold, which mainly caters to demand of jewellery industry.
“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year," the Citigroup analysts said. “It is only a matter of time for fresh" highs in U.S. dollars, they said.
Gold has surged 19% this year to the highest in almost nine years in global markets as the coronavirus pandemic drove investors to havens. Gold is expected climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months, Citi said.
(With Agency Inputs)
