New Delhi: Gold and silver prices fell sharply today in Indian markets, continuing their weak trend of recent weeks. On MCX, December gold futures fell ₹450 or 0.9% to ₹49,051 per 10 gram while silver futures tumbled 0.9% or ₹550 to ₹59,980 per kg.
In the previous session, gold prices had slumped ₹750 or 1.5% per 10 gram while silver had tumbled ₹1,628 or 2.6% per kg. In global markets, gold rates dropped to the lowest level in four months amid optimism over Covid-19 vaccine developments.
US President-elect Joe Biden on Monday was formally given the go-ahead by a federal agency to begin his transition to the White House. Spot gold declined as much as 0.6% to $1,826.47 an ounce, the lowest level since July while silver dropped 1.1%, platinum rose 0.5% and palladium was little changed.
Asian stock markets were mostly higher today as progress in developing an inexpensive coronavirus vaccine boosted hopes of a swift global economic recovery. AstraZeneca on Monday said its COVID-19 vaccine that it has developed in partnership with Oxford University is likely to be cheaper to make, easier to distribute and faster to scale-up than rivals and could be up to 90% effective.
Global risk sentiment was further boosted after news reports, citing sources, said that US President-elect Joe Biden plans to nominate former Federal Reserve Chairwoman Janet Yellen to become the next Treasury secretary – a move welcomed by traders particularly after incumbent Stephen Mnuchin last week sparked a spat with the central bank over access to virus relief cash.
After hitting a record high of ₹56,200 in August, gold prices have sagged amid vaccine progress and the recent outflow from gold-backed exchange-traded funds.
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