Gold prices today fall for three days in a row1 min read . Updated: 07 May 2020, 12:30 PM IST
- Many analysts suggest buy-on-dip strategy on gold
- In near term, gold rates may remain choppy, they suggest
Gold prices in India edged lower today in noon trade though it remained in a narrow range. On MCX, June gold futures fell about ₹30 to ₹45,340 per 10 gram, extending losses to the third day. Gold prices had fallen about ₹426 per 10 gram in the previous session. Silver futures also gave up early gains and were down 0.1% to 41,803 per kg.
In global markets, gold prices edge higher today after a sharp fall in the previous session. Spot gold climbed 0.3% to $1,690.19 per ounce, after a 1% fall in the previous session. Despite bleak economic data, the dollar's strength is weighing on gold, analysts said. The US dollar today touched a more than one-week high against a basket of major currencies. Besides firmer dollar, some bullion refineries restarted have production, easing supply-side concerns.
The US dollar index was 0.12% higher at 100.25. Among other previous metals, platinum climbed 1.3% to $758.54 and silver edged up 0.3% to $14.96.
Gold traders will keep an eye on US weekly initial jobless claims data due later in the day for further direction, while keeping a close watch on developments surrounding US-China relations after President Donald Trump threatened new tariffs on Beijing.
"Gold remains supported by increased US-China tensions over Chinese handling of the virus related situation, global growth worries amid disappointing economic data and downbeat outlook, loose monetary policy stance of major central banks and continuing ETF inflows," Kotak Securities said in a note.
On the other hand, a large number of European countries and many US states have begun to lift virus related restrictions. Also weighing on price is firmness in US dollar, the brokerage said.
Central banks around the world have unveiled unprecedented amounts of stimulus to help soften the blow to the world economy from the pandemic and gold, which is considered a safe investment option, during times of political and financial uncertainty, tends to benefit from widespread stimulus measures, say analysts.
"Gold may continue to witness choppy trade amid mixed factors however we maintain buy on dips as global growth concerns are far from over," Kotak Securities added. (With Agency Inputs)