On Tuesday, the prices of gold and silver dropped in futures markets in India for the second time within three days.
On Multi Commodity Exchange (MCX), gold October futures declined by ₹136 to ₹47,950 per 10 grams against the previous session’s ₹48,086 per 10 grams. Silver September futures slipped by ₹347 to ₹67,542 per kg.
Around the world, spot gold decreased by 0.2 per cent to $1,810.56 per ounce along with US gold futures falling by 0.5 per cent to $1,813.80.
According to analysts, Mint reported that Gold ETF (exchange-traded fund) flows have displayed a lack of confidence in the market. The holdings of the world’s largest gold-backed ETF, SPDR Gold Trust declined 0.2 per cent to 1,029.71 tonnes on Monday as compared to 1,031.46 tonnes on Friday.
Ravindra Rao, who is the Head of Commodity Research at Kotak Securities stated, “COMEX gold trades modestly lower near $1,815 per ounce after a 0.3 per cent gain yesterday. Gold is choppy but range-bound above $1,800 per ounce amid volatility in equities and US dollar and as market players assess Fed’s monetary policy stance.”
He continued saying that the supporting price was rising virus concerns including the slowdown in China’s economy as well as mixed economic data from key economies. Gold might continue to remain “choppy” with larger financial markets but virus concerns and global growth worries would keep prices supported.