Home / Markets / Commodities /  Gold prices today fall sharply, down 6,000 from record highs; silver plunges

Gold and silver fell sharply in Indian markets, tracking softness in global rates. On MCX, December gold futures were down 0.8% to 50249 per 10 gram, their second fall in three days. Silver futures on MCX plunged 2.8% to 60700 per kg. In the previous session, gold had surged 1% or about 500 while silver had jumped 1,900 per kg. Gold has given up significant gains after hitting a record high of 56,200 on August 7. Earlier this week, it had dipped below 49,500 before seeing some recovery.

In global markets, gold prices were muted today. Spot gold was down 0.1% at $1,896.03 per ounce. Hopes of a US coronavirus aid deal supported gold at lover level. Silver rose 0.2% to $24.22 per ounce, platinum fell 0.1%, to $883.25 and palladium gained 0.5% to $2,319.59.

U.S. House Speaker Nancy Pelosi said she was "hopeful" an agreement could be reached, though her party and Republicans remain miles apart on their proposals. On Tuesday, a top aide to Democratic House Speaker Pelosi said the lawmaker had spoken for a second straight day with Treasury Secretary Steven Mnuchin, and the two agreed to continue negotiating, raising hopes they could break a months-long impasse.

The dollar index against a basket of currencies was flat at 93.817. A rebound in US dollar had battered gold prices last week.

"With some signs of correction in US dollar, gold could see some extended gains however $1900/ounce will be a key barrier to cross before bulls re-enter with full vigor," said Kotak Securities in a note.

Donald Trump and Joe Biden today traded personal barbs in the first of three debates ahead of the November 3 vote. There was little initial reaction at the end of the debate in equity markets.

"We believe that the outlook for gold will be primarily determined by safe-haven seekers. Silver should meanwhile continue moving in gold’s slipstream," said Carsten Menke of Julius Baer. (With Agency Inputs)

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