Multi Commodity Exchange of India’s (MCX) gold and silver rates dipped on Thursday in both Indian and international markets. Gold rates fell by 0.02% to Rs 47,170 per 10 grams while silver rates dipped by 0.15% to Rs. 63,175 per kg.
In the global market, gold rates fell by 0.1% to $1,788.17 per ounce. Gold rates dropped by 0.7% which is the biggest one-day fall in two weeks. Silver and platinum also dipped. Silver is currently priced at $23.85 per ounce, while platinum is $986.35.
The current price drops have been attributed to pandemic risks and geopolitical tensions. “While China has shown some improvement, the virus situation is still out of control, and restrictions to limit the spread are hampering economic activity. Mixed economic data from major economies highlights uneven recovery and the need for continuing with stimulus measures. “ Analysts at Kotak Securities said in a statement.
“Tensions relating to Afghanistan are high while market players are worried how global leaders may respond. Gold has slipped back below $1800/oz as market players position for the Jackson Hole Summit. However, we expect buying interest to emerge at lower levels amid persisting challenges for the global economy,” the brokerage further added.
Jackson Hole Summit will be held later this week by US Federal Reserve. Traders are hopeful that the central bank will announce new updates regarding its stimulus program.