Gold prices today fall sharply, silver rates plunge1 min read . Updated: 11 Sep 2020, 09:07 AM IST
- Analysts expect buying interest in gold to emerge at lower levels amid increasing challenges to global economy
- Gold rates in India are now down about ₹5,000 per 10 gram from last month's highs
Gold and silver rates today fell sharply in Indian markets tracking weak global cues. On MCX, gold futures fell 0.9% to ₹51,306 per 10 gram while silver futures plunged 1.5% to ₹67970 per kg. In the previous session, gold had risen 0.7% while silver had gained 0.52%. Gold and silver prices in India have struggled for direction after hitting highs of ₹56,200 and ₹79,723 last month. And in recent days they have traded in a very narrow range.
In global markets, gold prices fell today after posting a strong gain in the previous session. The US dollar recovered from a drop against the euro in the previous session. But concerns over global economic recovery kept losses of gold capped. Spot gold was down 0.3% at $1,947.41 per ounce after rising to $1,965.94 in the previous session.
Among other precious metals, silver fell 0.3% to $26.84 per ounce, platinum eased 0.1% to $925.59 and palladium lost 0.4% to $2,283.72.
A stronger US dollar makes gold more expensive for holders of other currencies. The European Central Bank on Thursday left policy unchanged.
"Gold also benefitted from some pick up in investor buying. Gold holdings with SPDR rose by 2.92 tonnes to 1252.96 tonnes, first increase since August 26. Also supporting gold price is increased US-China tensions," Kotak Securities said in a September 10 note.
"Gold may witness choppy trade as equity markets and US dollar struggle for clear direction. We however expect buying interest to emerge at lower levels as increasing challenges to global economy may increase gold’s safe haven appeal while Fed’s dovish stance and concerns about US economy may limit upside in US dollar," the brokerage added.
European Central Bank President Christine Lagarde said that while the ECB is watching the exchange rate, it is not a monetary policy tool.
Gold traders are now awaiting Investors now await UK GDP data and US inflation numbers due later in the day.