Gold prices today fall ₹500 per 10 gram, silver rates crash ₹2,0001 min read . Updated: 14 Aug 2020, 05:28 PM IST
- Gold prices in India have been volatile since hitting a record high last week
- Silver has also been on a wild ride
Gold and silver prices fell sharply in Indian markets, tracking muted global rates. On MCX, October gold futures fell 0.8% to ₹52,495 per 10 gram while September silver futures dropped 3% to ₹68,886 per kg. Gold prices have been volatile since hitting a record high of about ₹56,000 last week. In the previous session, gold had risen 1% amid volatile trade while silver had surged about 6%. So far this week, gold is down over ₹2,000 per 10 gram.
In global markets, gold prices were flat today at $1,952 per ounce. Gold has has fallen 4% so far this week amid a wild ride. Investors booked profit after Russia approved a coronavirus vaccine on Tuesday.
Gold was supported by a weak dollar, which fell for a third consecutive session against its rivals, making gold cheaper for holders of other currencies.
Data released on Thursday showed the that jobless claims in the US dropped below one million last week for the first time since the start of the COVID-19 pandemic. But at least 28 million people are still receiving unemployment checks, indicating a weak labour market.
On the US stimulus plan front, the stalemate continued. President Donald Trump said he was blocking Democrats' effort to include funds for the U.S. Postal Service and election infrastructure in a new coronavirus relief bill.
Bullion prices have already surged almost 30% this year.
The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.1% to 1,252.09 tonnes on Thursday.
Meanwhile, billionaire Ray Dalio's hedge fund Bridgewater Associates has raised its investment in gold-backed exchange-traded fund or gold ETFs by a third in the second quarter. Exchange-traded funds (ETFs) store gold on investors' behalf.
Bridgewater bought 1.4 million shares in the SPDR Gold Shares ETF, equivalent to around 130,000 ounces of gold, in the April-June quarter, a regulatory filing showed.
Gold ETFs have seen record inflows this year as investors rush for the safe-haven appeal of gold amid the coronavirus crisis upends markets and low returns on bonds. (With Agency Inputs)