The prices of Gold and Silver have continued to decline sharply in Indian Markets. Today on MCX, Gold futures lowered 0.4% to ₹49,460/10 gram, continuing its a downfall from last week. Whereas, Silver too declined about 1% to ₹58,473/Kg. The Indian market of Gold and Silver took a heavy blow last week when the prices of these metals were lowered sharply. Gold prices in the country declined about ₹2000/10 gram while Silver prices were lowered by ₹9000/kg last week.
Comparing the price of Gold to that of August 7th, it’s the price has been lowered by ₹7000/10 gram currently. Due to the renewed risk aversion in the global financial markets, gold has been under the plunger as the resurgent US dollar is being seen as the preferred safe-haven asset among the investors. The rising virus cases, especially in European countries, have awakened the worries about lockdowns as a result of which the global risk sentiment has weakened. However, the counties are not hinting at any large-scale lockdown yet.
After the last week’s heavy blow to Gold and Silver, the prices of Gold were steady in the global markets. There was a little change observed in Spot Gold at $1860.19/ounce as the juggernaut of the US dollar finally relaxed for a bit. After reaching a record high in a two-month period, the US dollar index rolled down by 0.14% against its competitors. A relatively weak dollar makes the bullion cheaper for the other currency holders. Apart from Gold, Palladium rose up by 0.1% to $2,217.87, Silver gained 0.3% to $22.93/ounce and Platinum swelled its price by 0.4% to $850.74.
Ahead of the Tuesday’s US Presidential debate between President Donald Trump and Democratic opponent Joe Biden, it seems the gold traders have moved to the sidelines.
Notably, China has adversely been able to rise it’s profit in industrial companies for the fourth consecutive month in August as the Asian stock markets were mostly on the upper side.
In US, the Gold investors were searching for signals of initiation in talks for further stimulus. US Speaker Nancy Pelosi has already said over the weekend that there could be a finalization of deal with the White House over relief package amid pandemic.
ETF investors were notably on a hold despite the recent price drop. On Friday the holdings fell about 0.02% to 1266.84 tonnes in SPDR Gold Trust.
CFTC (Commodity Futures Trading Commission) said on Friday that the speculators lowered their positions in COMEX gold and silver contracts in the week to September 22.