New Delhi: Gold prices in India fell for the third day in a row tracking muted global rates. Better-than-expected US employment data strengthened the US dollar, putting pressure on gold.
On MCX, gold futures settled slightly lower at ₹50,690 per 10 gram, extending losses to the third day. Gold has shed about ₹800 per 10 gram in three days. And from August 7th highs of ₹56,200, gold is down about ₹5,500 per 10 gram or about 10%.Silver futures on MCX on Friday settled at ₹67,481 per kg amid volatile trade, up 0.8%. Silver rates have plunged over ₹10,000 per kg from previous month’s highs.
In global markets, giving up intraday gains, US gold futures settled flat on Friday at $1,940 per ounce. Latest data showed nonfarm payrolls in the US increased by 1.371 million jobs in August, pushing down the unemployment rate fell to 8.4%. The better-than-expected jobs data pushed up US dollar against a basket of other currencies.
A strong US dollar makes gold costlier for holders of other currencies.US Federal Reserve Chair Jerome Powell on Friday said the jobs report for August was “a good one,” but reiterated the central bank will keep monetary policy ultra-accommodative for years to support recovery from the coronavirus crisis and recession.Analysts say that Fed’s super-accommodative stance will keep gold prices supported at lower levels.
The yellow metal has gained over 25% this year in global markets, helped by easy monetary policy, especially from the Fed, and safe-haven demand driven as coronavirus ravaged global economy.In India, the sharp price drop in gold prices has helped retail physical demand to pick up in some places, Reuters reported.
India’s gold imports in August nearly doubled from a year ago to the highest level in eight months as some jewellers restocked ahead of the festive season, reports said.