Gold Price In India: Domestic gold and silver prices fell on Thursday as the US dollar moved higher, after US Treasury Secretary Steve Mnuchin dashed hopes for a new stimulus package before the presidential elections. MCX gold futures (due for expiry on December 5) declined by Rs 138 – or 0.27 per cent – to Rs 50,404 and silver futures (December 4) eased to Rs 60,174, down by Rs 1,429 – or 2.32 per cent – from their previous close. Weakness in the precious metals came despite a sharp selloff across global equities amid rising COVID-19 cases. (Also Read: Is Silver The New Gold?)
Global spot gold (Comex) eased as much as 0.77 per cent on Thursday to $1,892.70 per ounce, and silver 2.83 per cent to $23.71 per ounce.
The rupee edged lower to end at 73.38 against the US currency. The dollar index – which gauges the greenback against six currencies – gained as much as 0.49 per cent on Thursday.
Domestic spot gold settled at Rs 50,663 per 10 grams on Thursday, and silver at Rs 60,159 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
— IBJA (@IBJA1919) October 15, 2020
Gold, often considered a hedge against inflation and currency debasement, has climbed 25 per cent so far this year amid unprecedented levels of global stimulus to ease the economic blow from the pandemic. (Also Read: Gold “Dream Run” May Continue: Analysts)
What Analysts Say
“ETF (exchange traded funds) investors continue to remain on sidelines showing lack of investors’ buying interest. Although the general bias may be on the upside owing to a weaker US dollar, intermittent choppy trades are possible on uncertainty relating to US stimulus,” said Ravindra Rao, VP-head commodity research, Kotak Securities.