Gold and silver prices gradually fall in Indian markets due to weak global cues. On Friday, on MCX, gold futures fell 0.85% to settle at Rs 48,106 per 10 grams. On the other hand, silver futures dropped by 1.3% to Rs 59,100 per kg.
In three weeks, gold prices have fallen to Rs 4,000 per 10 gram while silver goes to Rs 6,000 per kg.
On Friday, a global stock index touched a record high for the third session this week. Global gold prices slumped as much as 2% to $1,773 which broke the support level of $1,800. After a near five-month trough, a growing optimism about a quick vaccine boosted economic recovery and a smooth White House transition.
It is to be believed, to have a calmer global trade regime under Joe Biden’s administration in the United States.
Kotak Securities said, “Risk sentiment has improved lately on the back of progress on vaccine front, easing political chaos in the US and hopes of additional stimulus measures. However, weighing on market sentiment is rising virus cases and uneven global economic recovery.”
The gold price went up by 20% so far this year and many analysts still believe that ultra-low interest rates and prospects of more stimulus will help support gold prices.
