Gold and silver prices continued to be under pressure in Indian markets today. On MCX, gold futures fell 0.4% to ₹49,460 per 10 gram, extending last week’s sharp fall, while silver tumbled 1% to ₹58,473 per kg. Last week, gold prices in India had tumbled ₹2,000 per 10 gram in India while silver plunged ₹9,000 per kg. As compared to is August 7th highs of ₹56,200, gold is down about ₹6,500 per 10 gram.
In recent days, gold has been under pressure amid a resurgent US dollar, which is being seen as the preferred safe haven asset amid renewed risk aversion in global financial markets. Global risk sentiment has weakened as rising virus cases especially in Europe have rekindled worries about fresh lockdowns though counties have not yet resorted to large-scale lockdowns.
In global markets, gold prices were steady after last week’s battering. Spot gold was little changed at $1,860.19 per ounce as the US dollar rally took a pause. The dollar index was down 0.14% against rivals, after hitting a two-month high last week. A softer dollar makes bullion cheaper for holders of other currencies.
Among other precious metals, silver rose 0.3% to $22.93 per ounce, platinum gained 0.4% to $850.74 and palladium was up 0.1% to $2,217.87.
Gold traders moved to the sidelines ahead of Tuesday’s the first US presidential debate between President Donald Trump and Democratic opponent Joe Biden.
Asian stock markets were mostly higher today after data over the weekend showed profits at industrial companies in China grew for a fourth consecutive month in August.
Gold investors also looked for any signs of breakthrough in talks for further stimulus in the US. Over the weekend, US House Speaker Nancy Pelosi said a deal could be reached with the White House on a coronavirus relief package and that talks were continuing.
Despite the recent price drop, ETF investors remained on the sidelines. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.02% to 1,266.84 tonnes on Friday.
Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to September 22, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
In India, the drop in gold pries triggered some uptick in retail demand last week, dealers said. (With Agency Inputs)
