Gold prices fell sharply in Indian markets today, extending losses to the fourth day. On MCX, gold futures fell as much as ₹763 to ₹41,443 per 10 gram as a selloff in global equities also hurt the precious metal. Silver futures on MCX today tumbled 2% or about ₹1,000 per kg to ₹43,179. Gold prices in India had tumbled about ₹1,100 per 10 gram in the previous session while silver had crashed ₹1,600 per kg.
Though gold is viewed as a safe haven, it has not been spared from this week’s global rout in equities. Equities have been in freefall on concerns emergency fiscal and monetary packages won’t be enough to stave off a recession amid the coronavirus pandemic that’s hitting global growth.
The global rout in equities has triggered margin calls and as investors look for opportunities where they can cash in while a stronger dollar has also curbed the metal’s appeal.
Gold in global markets is heading for its biggest weekly loss since 2011, despite climbing to the highest in more than seven years earlier this week, as investors sell the metal to meet liquidity needs.
In global markets, spot gold today fell 1.3% to $1,555.42 an ounce, after a 3.6% drop in the previous session. So far this week, gold prices are down about 7% this week after touching a seven-year high of above $1,700 on Monday.
Among other precious metals, silver fell 2% while platinum rose 0.4%. Palladium advanced 0.4% following a slump of almost 20% Thursday.
The slide in domestic gold prices come despite rupee hitting a record low of ₹74.50 against the US dollar today. Domestic gold prices include 12.5% import duty and 3% GST.
Asian markets tumbled today after Wall Street saw its biggest one-day sell-off since 1987 in a wild session that saw circuit breakers triggered for the second time in a week.
Gold investors await clues as the US Federal Reserve meets next week after having made an emergency rate cut last week and injecting huge liquidity to the Treasury market Thursday. The European Central Bank, on its part, on Thursday launched a series of monetary policies. (With Agency Inputs)