New Delhi: Gold and silver prices today moved lower in Indian markets, tracking softer global rates as chances of a US stimulus package being rolled out before the November elections faded.
On MCX, December gold futures declined 0.4% to ₹50,360 per 10 gram as the precious metals fell for the second day in three days. On the other hand, December silver futures fell 0.9% to ₹61,064 per kg. In the previous session, gold had edged up 0.5% while silver had jumped 1.6%.
In global markets, gold prices fell today as a steady US dollar also weighed on gold. Spot gold fell 0.4% to $1,893.17 per ounce. The dollar index edged higher to 93.435, drawing support from rising coronavirus cases and scant progress towards the US stimulus deal. US Treasury Secretary Steven Mnuchin said getting a fiscal stimulus deal before next month’s election would be difficult, which weighed on global equities.
Among other precious metals, silver fell 1% to $24.05 per ounce while platinum eased 0.3% to $854.59 per ounce. Fading hopes of an immediate US economic stimulus package and a recovery in dollar continue to dent gold prices but rising coronavirus pandemic worries and geo-political tension may boost the safe haven demand and thus the price of the commodity, said Hareesh V, head of commodity research at Geojit Financial Services.
Gold, considered a hedge against inflation and currency debasement, has climbed about 25% this year amid the unprecedented levels of global stimulus to ease the economic blow from the pandemic.
Meanwhile, Metals Focus, a consultancy, in its latest projection said that world’s mines will produce 3,368 tonnes of gold this year, down 4.6% from 2019 and the lowest in 5 years, according to Reuters. But high bullion prices will help to push up output by 8.8% to a record 3,664 tonnes in 2021.
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