Gold prices today edge lower, down ₹5,000 from last month's highs1 min read . Updated: 10 Sep 2020, 10:49 AM IST
- Analysts say that gold prices are stuck in a range and directionless trade may continue unless either side is broken
- Silver prices are now down more than ₹10,000 per kg in about a month
Gold prices in India continued to remain in a narrow range in Indian markets. Despite positive global cues, gold prices on MCX fell 0.02% to ₹51390 per 10 gram amid a stronger rupee. On the other hand, silver gained 0.25% to ₹68619 per kg. In the previous session, gold futures had risen 0.07% on MCX while silver had slipped 0.12%. Gold is now down about ₹5,000 per kg from record highs of about ₹56,200, hit last month.
Similarly, silver prices are now down more than ₹10,000 per kg in about a month.
In global markets, gold prices moved higher, supported by a weaker US dollar and concerns that a coronavirus vaccine could get delayed. Spot gold rose 0.7% to $1,945.20 per ounce.
Trials of AstraZeneca-Oxford University's covid vaccine has been paused due to an unexplained illness in a study participant. On the other hand, the US dollar slipped today against rivals, with the dollar index down 0.10% to 93.165.
Among other precious metals, platinum jumped 1.8% to $917.32 an ounce after World Platinum Investment Council forecast a deficit in supply this year, from earlier projection of surplus. Silver rose 0.7% to $26.88.
"Supporting gold price is increased safe haven demand amid uneven global economic recovery, rising virus cases, increased US-China tensions and Brexit uncertainty. Also weighing on price is lack of ETF buying despite correction in prices. The recent movement in gold indicates that prices are stuck in a broad range of $1900-2000/oz and directionless trade may continue unless either side is broken," Kotak Securities said in a note.
Gold traders will be watching European Central Bank's policy announcement due later in the day. Analysts expect the ECB is expected to hold rates steady but indicate that downside risks have intensified, suggesting further easing is possible before year-end.
"European central bank will hold monetary policy meet and the US Fed is scheduled next week. Focus would be also on Brexit and US-China trade relations," said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers.
Many central banks across the globe have announced unprecedented stimulus this year, helping gold prices gain about 28% so far this year since it is considered a hedge against potential currency debasement and inflation. (With Agency Inputs)