MCX gold and silver futures slid to as low as Rs 52,302 and Rs 67,005 respectively
Gold Price In India: Domestic gold and silver futures fell around 2 per cent on Wednesday tracking global rates, as spot gold dipped below the $2,000-per-ounce mark. Multi Commodity Exchange (MCX) gold futures – due for a delivery on October 5 – declined by as much as Rs 1,269 – or 2.37 per cent – to Rs 52,302 during the session, compared to their previous close of Rs 53,571. The MCX silver futures contract – due for a September 4 delivery – declined by as much as Rs 2,500 – or 3.60 per cent – to Rs 67,005. (Also Read: Silver Is Outperforming Gold, Is It The New Gold?)
MCX gold futures ended at Rs 52,622, down Rs 949 or 1.77 per cent for the day, and silver futures settled at Rs 68,129, down Rs 1,376 or 1.98 per cent.
In the international market, gold declined partly in response to a pause in the dollar’s slide as investors awaited more details on the US central bank’s strategy to revive the pandemic-hit American economy.
It was last seen trading 0.8 per cent lower at $1,984.74 per ounce, having hit a one-week high of $2,014.97 the previous day. Silver traded down 1.4 per cent at $27.28 per ounce.
Analysts awaited minutes from the Federal Reserve’s last policy meeting. (Also Read: Gold’s “Dream Run” May Continue, Say Analysts)
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets, benefiting from a flood of capital into the world economy and investors seeking a relatively safe location to put their money in.
(Gold futures had risen to an all-time high of Rs 56,191 on August 7)
#Gold and #Silver Opening #Rates for 18/08/2020#IBJApic.twitter.com/IbQmaVF5HO
— IBJA (@IBJA1919) August 18, 2020
What Analysts Say
“Gold fell to as low as $1,985.2/oz in intraday trade yesterday in reaction to upbeat US housing data and some US equity indices hitting record highs but recovered soon to end above the pivotal $2,000/oz mark,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold has rebounded sharply from recent lows and is holding near the key $2,000/oz level which shows possibility of extended gains.”
