Gold and silver prices in India on Thursday plunged affected by decline in global rates. On MCX, gold futures declined 0.9% to Rs 51,279 per 10 gram while silver futures fell by 1.6% to Rs 67,500 per kg.
At 2:38 pm, the Gold October futures recovered to Rs. 51,455 after touching the days high of Rs 51,710 per 10 grams. On the other hand, Silver October Futures was ticking Rs 67,890 after touching the days high of Rs 67,974 per kg.
The metal options have traded in very narrow margin over the past week. Gold had reached its highest point of Rs 56,200 in August. In the previous session, gold had edged up 0.1% while silver had closed flat.
“MCX Gold slipped in tandem with comex gold, as the U.S. dollar index strengthened, although doubts over a swift global economic recovery and the Fed’s pledge to hold interest rates near zero until at least 2023 limited losses for the safe-haven metal. The Fed signaled it expects the U.S. economic recovery from the coronavirus crisis to accelerate with unemployment falling faster than the central bank expected in June. Meanwhile, data showed U.S. consumer spending slowed in August, pointing to a stall in the economic recovery from the effects of the pandemic. For intraday we expect tone to be bearish,” said Jigar Trivedi, Anand Rathi Shares & Stock Brokers.
“Amid other factors, gold remains supported by mixed US economic data, US-China tensions and Brexit uncertainty. Delay in US stimulus is also weighing on market sentiment,” Kotak Securities had said.
US Federal Reserve’s pledge to hold interest rates near zero until next few years and concerns over global economic recovery helped support gold at lower levels. In the global markets, spot gold was down 0.5% to $1,947.42 per ounce after hitting a nearly two-week high of $1,973.16 in the previous session. Silver was down by 0.98% to $26.870.
