Gold and silver prices fell today in Indian markets after a strong surge in the previous two sessions. On MCX, October gold futures fell 0.5% to ?53,313 per 10 gram while silver futures declined 0.8% to ?68,938 per kg. In the previous two sessions, gold prices had jumped ?1,300 per 10 gram while silver had surged ?2,100 per kg.
In global markets, gold prices held above the key level of $2,000 per ounce, supported by a softer US dollar. Spot gold was up 0.1% at $2,002.12 per ounce. Among other precious metals, silver rose 0.6% to $27.82 per ounce while platinum gained 0.2% to $958.33.
The dollar index fell for a sixth straight session to near a more than two-year low. A weaker US dollar makes gold less expensive for holders of other currencies. The benchmark 10-year U.S. Treasury yields also moved lower.
The gains in gold were capped after a strong Wall Street session in which the S&P 500 hit an all-time high. Asian equities were mostly higher today.
Gold traders are looking ahead to the release of the minutes of the US Federal Reserve’s latest meeting to get more clues on the interest rate outlook of the central bank.
Volatility in gold remains substantially high and this may continue unless there are fresh triggers which may come from Fed minutes or any decision comes on US fiscal stimulus, Kotak Securities said in a note.
“With the current momentum, gold may try to sustain above the $2000/oz level hence one can be on the buying side. But one needs to be cautious,” the brokerage added.
The stalemate continued over the US stimulus package but House Speaker Nancy Pelosi provided a chink of hope by saying her party could be willing to make cuts to its offer in order to seal a deal, then return to thrash out other issues after November’s elections.
In Indian markets gold has surged nearly 40% this year, tracking a rally in global rates and depreciation in the rupee against the US dollar. Rising haven demand and expectations that central banks and governments will maintain support for economies hit by the coronavirus have pushed gold prices to record highs. On August 7, gold hit a record high of ?56,191 in Indian markets. (With Agency Inputs)
News Source: livemint