Gold prices today fall sharply, down ₹6,000 from record highs; silver plunges2 min read . Updated: 05 Oct 2020, 05:14 PM IST
- ETF investors continued to remain on the sidelines, awaiting the price direction of gold
- Gold and silver prices in India have fallen sharply from their August highs
Gold and silver prices fell sharply in Indian markets today, tracking softness in global rates. On MCX, December gold futures were down 0.9% at ₹50,130 per 10 gram while silver futures declined 0.88% to ₹60,605 per kg. In the previous session, gold prices had risen 0.4% on MCX while silver had jumped about 1.6%. Commodity exchange MCX was closed on Friday due to a public holiday. Gold and silver prices in India have sharply corrected from their August highs of about ₹56,200 per 10 gram and about ₹80,000 per kg respectively in tandem with softness in global rates.
In global markets, gold prices were little changed changed today as investors focused on Donald Trump's health. Gold prices were steady around the $1,900 level while US gold futures were down 0.1% at $1,906.30. Asian stocks were mostly higher, along with U.S. futures, as traders reacted to the possibility President Donald Trump may be able to leave hospital as soon as today.
Doctors on Sunday insisted that Trump, who tested covid positive last week, is doing well and could be discharged as soon as today.
"Gold remains choppy due to a volatile US dollar and hopes of fresh economic stimulus measures. Optimism over Covid vaccine, uncertainties over US presidential election in November and rising US-China tensions are also influencing the sentiments of yellow metal," said Hareesh V, Geojit’s Head of Commodity.
"f prices hold the support of $1840 (London Spot) we can expect a rebound, but it needs to break $1920 to continue the momentum. An unexpected drop below $1820 would extend further selling pressure," he added.
Gold prices were supported by a softer dollar that makes the precious metal cheaper for holders of other currencies. The dollar index was down 0.12% against rivals.
Among other precious metals, silver rose 0.8% to $23.89 per ounce, platinum eased 0.1% to $881.51 and palladium was little changed at $2,307.64
ETF investors continued to remain on the sidelines, awaiting the price direction of gold. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.05% to 1,275.60 tonnes on Friday.
Also, speculators reduced their bullish positions in COMEX gold and increased them in silver contracts in the week to September 29, the US Commodity Futures Trading Commission (CFTC) said.
Gold traders will keep an eye on addresses from top global central bankers. Fed Chair Jerome Powell and ECB Chief Economist Philip Lane are scheduled to deliver keynote addresses at the NABE conference on Tuesday.
On Wednesday, the minutes of the September 15-16 meeting of the Fed will also be released while on the same day US Vice Presidential debate takes place in Salt Lake City.
India’s current account recorded the historic high surplus of $20 billion in June quarter, reflecting a sharp fall in imports coupled with the strong resilience of software and the modest strength of goods exports. But with a bounce-back in global oil prices, pick-up in domestic economic activities and likely rise in gold imports, the trade deficit is likely to widen, leading to the current-account balance turning modestly negative in H2 FY21, say analysts at domestic brokerage Anand Rathi. (With Agency Inputs)