Gold prices today fall for second time in three days, silver rates drop2 min read . Updated: 22 Dec 2020, 01:08 PM IST
- Gold has rebounded from lows in recent days
- But both gold and silver remain substantially lower than their record highs
Gold and silver prices edged lower in Indian markets mirroring similar trend in international markets. On MCX, gold futures edged 0.5% lower to ₹50,180 per 10 gram in second decline in three days while silver fell 2% to ₹67,660 per kg. In the previous session, gold prices had edged 0.2% higher while silver rose 1.5%. Though gold has recovered from lows of below ₹48,000, it remains significantly lower than the August highs of ₹56,200. Similarly, silver had also almost touched ₹80,000 per kg in the same month.
In global markets, gold fell today as a stronger dollar offset support from US Congress passing a long-awaited near $900 billion coronavirus aid package. Some profit-taking was also seen after the recent run-up in prices. Spot gold fell 0.3% to $1,870.69 per ounce. old has climbed over 23% this year, mainly driven by a raft of pandemic stimulus measures that stoked fears of inflation. The precious metal is often used as a hedge against inflation.
Silver slipped 1.6% to $25.74 an ounce. The US House of Representatives has passed a $900 billion pandemic relief package that would finally deliver cash to businesses and individuals. The Senate is due to vote later in the day.
"Gold has bounced back after taking support near $1820/oz level and price is now near the key $1900/oz level and we may need fresh positive triggers to see a sustained rise," Kotak Securities said in a note.
"Gold rallied sharply last week on back of weaker US dollar, mixed economic data from major economies, rising virus cases, Brexit uncertainty, US-China tensions, dovish stance of major central banks and progress on US fiscal stimulus deal. The upside in gold however continued to be limited by progress on vaccine front," it added.
Silver, on the other hand, has outperformed and rallied sharply last week as it benefitted from concurrent gains in gold and industrial metals on back of weaker US dollar, Kotak said, adding that silver also benefitted from some ETF inflows as well as manufacturing PMI data which showed continued improvement in industrial sector, the brokerage said.
Holdings in SPDR's Gold Trust, the world's largest gold-backed exchange-traded fund, showed some uptick. They rose 0.2% to 1,169.86 tonnes on Monday from 1,167.82 tonnes on Friday.
Asian stock markets dipped today as a new variant of the coronavirus in the UK and a wave of lockdowns and travel restrictions hurt sentiment.
The emergence of the variant coronavirus strain in Britain has dented overshadowed progress on a $900 billion US pandemic relief package and the initial rollout of vaccines.
The mutated virus, which is said to be 70 percent more transmissible, has forced numerous countries around the world to shut their borders to the UK. (With Agency Inputs)
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