Gold prices struggle today post dropping ₹1,200 last week, silver rates drop

Gold and silver prices in India struggled to hold on to the positive gains secured in the last quarter as they witnessed a sharp fall last week. On the Multi Commodity Exchange (MCX), gold futures rose just 0.1 per cent or just below Rs 50,200 per 10 gram while silver futures gained 0.5 per cent to Rs 60,730 per kilogram. Gold prices had edged about 0.2% lower in previous day’s truncated session as MCX remained closed during for the morning session due to a holiday. Last week, gold prices on MCX fell ₹1,200 per kg, following a similar pattern in overseas markets as optimism over COVID-19 vaccine put pressure on gold prices.

In the global market gold dropped as much as 1,3% on Monday, and was placed at $1,890.43 an ounce, silver fell 0.1% to $24.74 per ounce, platinum was flat at 925.50, while palladium fell 0.4% to $2,323.30. This price drop for gold was supported by a weaker US dollar as the dollar index edged 0.17% lower to 92.477, making gold cheaper for holders of other currencies.


Commenting on the gold and silver prices today, Anuj Gupta, DVP – Commodities and Currencies Research, Angel Broking, said, “As expected yesterday gold prices increased by 0.98 per cent and closed at 50,160 levels and silver increased by 2.32 per cent and closed at 60,396 levels. Weakness in dollar supports the gold and silver prices as a safe haven investment. On Monday, Spot gold ended higher by 1.12 per cent to close at $1880.9 per ounce as a weaker Dollar supported the yellow metal; however, solid economic numbers posted by China limited the gains,” he added.

He further commented, “Gold posted its biggest weekly decline since March’20 as an extension of the rally in the US Currency kept the dollar-denominated gold under pressure. However, an alarming increase in Covid-19 cases dampened hopes of economic recovery, in turn, limiting the fall in Gold prices.” Even as gold continues to strive to reach the height gained with the high-price trend in August, the yellow metal is expected to trade higher in today’s session.