Gold prices today fall for 4th day, plunge ₹2,500 per 10 gram this week: Check here latest price

New Delhi: Gold and silver prices in India continued their fall today, extending losses to the fourth day. On MCX, October gold futures were down 0.45% to ₹49,293 per 10 gram while silver futures lost 3% to ₹56,710 per kg. In four days, gold has lost about ₹2,500 per 10 gram so far.

In the previous session, gold had slumped 1.9% or ₹950 while silver had crashed 4.5% or ₹2,700 per kg. In global markets, gold prices continued their downward movement today, falling to a more than two-month low. Investors remained cautious ahead of US jobless claims data due later in the day while a robust dollar weighed on the precious metal. Spot gold fell 0.3% to $1,858.08 per ounce. The dollar index was firm near a more than eight-week peak against rival currencies amid signs of an economic slowdown in Europe.

A stronger US dollar makes bullion more expensive for holders of other currencies. Eurozone economic activity stagnated in September as a summer recovery faltered because of a resurgence in the spread of the coronavirus. Among other precious metals, silver fell 2.8% to near two-month low of $22.23 per ounce.

Unprecedented global stimulus, negative real rates and a weakening dollar pushed gold to a record high above $2,075 an ounce in early August. “Weighing on gold price is persistent strength in US dollar index which has tested the highest level since late July. The US dollar has edged up amid increasing concerns about health of European economies amid rising virus cases, mixed economic data and Brexit uncertainty,” Kotak Securities said in a note.

“The US dollar has edged up also as Fed continues to emphasize on need for additional fiscal stimulus which indicates that monetary measures are not being considered,” the brokerage added. Gold ETF investors have also moved to the side-lines amid the sharp fall in prices.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.87% to 1,267.14 tonnes on Wednesday.