Gold prices in India fell today, tracking a decline in global markets and profit-taking at higher levels. On MCX, gold futures were down 0.5% to ₹48,912 per 10 gram, after rising 0.55% within the previous session. Silver also came off highs. Silver futures on MCX dropped 1.2% to ₹52,408 per kg after surging 3.3% within the previous session. Gold prices had hit a replacement high of ₹49,348 per 10 gram last week in tandem with a rally in global markets.
In global markets, gold rates eased lower today, weighed down by a stronger dollar but concerns over surging coronavirus cases round the world capped losses. Gold slipped 0.2% to $1,798.52 per ounce while US gold futures fell 0.7% to $1,802.20. Among other precious metals, platinum rose 0.6% to $833.14 while silver edged 0.1% lower to $19.07.
The dollar index rose 0.1% against its rivals, making gold costlier for holders of other currencies.
“Gold has come off recent highs and that we may have fresh trigger to create the momentum to breach recent highs. With mixed factors in situ at the present , we may even see choppy trade. However buy on dips is suggested as rising virus cases and US-China tensions may keep price supported,” Kotak Securities said during a recent note.
US-China tensions also supported gold. Tensions also grew between the us and China over disputed claims to offshore resources throughout the South China Sea, with U.S. officials saying China’s claims were “unlawful.”
Gold is usually used as a secure store useful during times of political and financial uncertainty. Reflecting the strong investment demand, the holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, said its holdings rose 0.3% to 1,203.97 tonnes.
Across the planet , quite 1.3 crore people are reported to be infected by the novel coronavirus and 5.7 lakh have died, consistent with a tally posted on Johns Hopkins University.