Gold prices fall ₹900 in two days, silver rates slump again2 min read . Updated: 01 Oct 2019, 04:21 PM IST
- The dip in gold rates in India is expected to lift retail demand
- Global prices of both gold and silver have fallen in recent weeks
Gold prices in India fell today, extending its losses to the second day. On MCX, October gold futures were today down 0.3% to ₹36,811, after suffering ₹800 decline in the previous session. Gold prices are now down about ₹900 per 10 gram in just two days. Silver prices today also slipped to ₹44,056 a kg on MCX, after a decline of 3% or nearly ₹1,400 on Monday. After the latest fall, gold prices are now down about ₹3,000 per 10 grams from its last month's high of ₹39,885.
Similarly, silver is down about ₹7,400 a kg from its last month's high of ₹51,489 a kg. A decline in global prices of both silver and gold over the past few weeks has hurt domestic prices.
Gold prices fall ₹58; silver zooms ₹2,360
In spot markets, prices of 24 Karat gold fell by ₹58 to ₹38,140 per 10 gram in Delhi while silver zoomed ₹2,360 to ₹47,580 per kilogram, Press Trust of India reported, citing HDFC Securities.
In global markets, gold prices were today hovering around two-month lows after a 1.6% plunge on Monday. Today, spot gold prices were down 0.1% at $1,470 an ounce. A higher dollar and some recovery in global equity markets hurt gold prices. Investors also indulged in some profit-taking. The holding of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.22% to 920.83 tonnes on Monday from 922.88 tonnes on Friday.
The dollar index, which measures the greenback against a basket of six major currencies, was near a more than two-year high today as the uncertainties around the US-China trade war drove some investors to the safety of the dollar.
A higher dollar puts pressure on assets like gold that are priced in the US currency.
On Monday, China warned of instability in international markets from any "decoupling" of China and the United States, after reports said that Trump administration was considering delisting Chinese companies from US stock exchanges.
Back in India, the recent correction in gold prices ahead of the festive season is expected to lift demand. Some gold dealers have reported seeing an uptick in orders from jewellers as they stock up ahead of the festive season. The sharp rise in gold prices, which rose to a record high of ₹39,885 last month, has hurt retail demand. Despite the recent dip in prices, gold prices are up 17% so far this year. (With Agency Inputs)