Gold price rate today fell below Rs46,500 per 10 gram in India.
Gold prices fell, extending sharp losses of the previous session. On MCX, August gold futures fell 0.20% to ₹46,470 per 10 gram after tumbling ₹556 within the previous session. Tracking gold, silver also edged lower.
On MCX, July silver futures fell 0.51% to ₹48,830 per kg. Silver had declined about ₹1,500 within the previous session. An appreciation of rupee against US dollar also put pressure on domestic gold prices. Gold prices in India include 12.5% duty and three GST.
In global markets, gold prices dipped today as equity markets continued to rally on optimism over reopening of economies. Spot gold was down 0.2% at $1,722.93 per ounce.
Among other precious metals, platinum inched up 0.1% to $839.52, while silver fell 0.6% to $17.98. However, protests within the US and a soft dollar capped the downside for gold.
“Global risk appetite seems upbeat amid optimism over reopening of economies, signs of stabilization in global factory activity and hopes of more stimulus from major economies despite lingering worries over US-China and worsening social unrest in US,” Kotak Securities said during a note.
Gold is usually seen as an alternate investment during times of political and financial uncertainty. The US dollar index, which measures the greenback against six other currencies, was down 0.17% to a two-month low of 97.49. A softer dollar makes gold cheaper for holders of other currencies.
The rally in equity has taken some shine faraway from gold in past few sessions as businesses still reopen round the world following coronavirus shutdown. Hopes of additional stimulus have also pushed global stocks to a three-month high.
In Europe, the ECB is predicted to top up its rescue program with a further 500 billion euros of asset purchases at a gathering on Thursday.
Central banks and governments round the world have unleashed huge quantities of stimulus to cushion their economies from the coronavirus pandemic.
Still then, investors continued to place in money into gold ETFs. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.1%to 1,129.28 tonnes on Tuesday.