Gold prices today fall in 4th decline in 5 days; silver rates drop1 min read . Updated: 08 Sep 2020, 09:08 AM IST
- Gold prices in India are now down over ₹5,000 per 10 gram from last month's highs
- Analysts recommend buy-on-dips strategy for gold amid persisting challenges to global economy
Gold and silver prices fell today in Indian markets, tracking declines in global rates. On MCX, gold futures fell 0.5% to ₹50,803 per 10 gram. Tracking gold, silver futures also fell 0.6% to ₹67,850 per kg.
In the previous session, gold futures had risen 0.7%, snapping a three-day losing trend, while silver futures had surged 1.6%. Both gold and silver have corrected sharply from last month's highs. Gold is down over ₹5,000 per 10 gram from August highs while silver remains about ₹10,000 per 10 gram lower.
In global markets, gold prices fell today, hurt by a strong US dollar though surging coronavirus cases across the globe capped losses. Spot gold was down 0.2% at $1,925.68 per ounce. The dollar index rose 0.45% against its rivals, making gold more expensive for holders of other currencies.
Asian stock markets tried to regain some footing today after last week's collapse in US tech shares.
Supporting gold at lower levels is rising coronavirus cases globally and increased US-China tensions, say analysts.
News reports said that Trump administration may impose sanctions on China's biggest chipmaker, SMIC, a move that raises the possibility of retaliatory action from China.
On other hand, directionless and volatile trade in gold has pushed investors to the sidelines with gold holdings with SPDR ETF, the world's biggest gold-backed exchange traded fund, remaining flat, Kotak Securities said.
Consumer demand also remains weak in key markets such as India and China, say analysts.
"Gold may witness choppy trade as US dollar and US equity market struggle for direction, " Kotak said recommending buy-on-dips amid persisting challenges to global economy.
Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement. (With Agency Inputs)