New Delhi: Gold and silver prices tumbled this week to register their biggest weekly fall in many months. On MCX, gold futures dipped ₹238 on Friday to settle at ₹49,666 per 10 gram.
Tracking gold, silver dipped 1% to ₹59018 per kg. On a weekly basis, gold prices fell ₹2,000 per 10 gram in India while silver tumbled ₹9,000 per kg. Slippage below ₹49,250 could squeeze down prices lower to 48900-48800 region firstly or even lower, says domestic brokerage Geojit Financial Services.
In global markets, gold and silver prices posted their biggest weekly losses since March. Gold fell 4.6% this week, while silver slumped 15%. Analysts attributed the fall to a resurgent US dollar as concern over the outlook for global economic growth bolstered the appeal of the world’s most liquid currency as a safe-haven.
Gold, which is also seen as a hedge against inflation, was also pressured by abating concerns about inflation as dimming view of the recovery undercuts the outlook for a rise in consumer prices.
The risk-off sentiment has led to a rally in US Dollar to a two-month high and concomitantly falls in gold prices, says Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance.
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