Gold and silver prices edged lower today in Indian markets tracking muted global trend. On MCX, gold futures fell 0.15% to ₹50,425 while silver futures declined 0.35% to ₹62,832 per kg.
This is the second day of fall in gold prices in three days. In the previous session, gold prices rose 1.4% or ₹700 per 10 gram while silver rates had surged 3.3% or ₹2,000 per kg.
On Monday, gold prices had crashed ₹2,500 per 10 gram amid covid vaccine enthusiasm. In global markets, gold prices inched higher today on hopes of more stimulus measures as surging coronavirus cases in many parts of the world clouded the economic outlook.
But optimism over covid vaccine developments limited gains. Spot gold rose 0.2% to $1,879.31 per ounce while silver rose 0.2% to $24.26 and platinum fell 0.1% to $881.98. A weaker US dollar also supported gold. The dollar index was down 0.11% making the precious metal cheaper for holders of other currencies.
“Gold’s sharp rally in last few days made it vulnerable to profit taking while progress on vaccine front was the trigger. Price has however managed to take support near $1850/oz and we could see some more recovery as global challenges are far from over,” Kotak Securities said in a note.
Back in India, analysts hope the recent drop in prices will give some fillip to gold demand ahead of Dhanteras and Diwali. In August gold had hit a record high of ₹56,200.
The latest tranche of government of India’s sovereign gold bonds is currently open for subscription. The RBI has fixed issue price at ₹5,177 per gram of gold.
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