1 min read
. Updated: 24 Sep 2020, 09: 20 AM IST
Edited By Surajit Dasgupta
- A rebound in US dollar is striking drive on gold costs
- Silver costs comprise crashed over ₹10,000 this week
Gold and silver costs in India persisted their fall right this moment time, extending losses to the fourth day. On MCX, October gold futures had been down 0.45% to ₹49,293 per 10 gram whereas silver futures misplaced 3% to ₹56,710 per kg. In four days, gold has misplaced about ₹2,500 per 10 gram to this point. In the outdated session, gold had slumped 1.9% or ₹950 whereas silver had crashed 4.5% or ₹2,700 per kg.
In global markets, gold costs persisted their downward motion right this moment time, falling to a more than two-month low. Merchants remained cautious sooner than US jobless claims data due later in the day whereas a sturdy dollar weighed on the treasured steel.
Plot gold fell 0.3% to $1,858.08 per ounce. The dollar index was as soon as firm near a more than eight-week peak in opposition to rival currencies amid signs of an economic slowdown in Europe. A stronger US dollar makes bullion more dear for holders of alternative currencies. Eurozone economic process stagnated in September as a summer season recovery faltered which potential that of a resurgence in the spread of the coronavirus.
Amongst other treasured metals, silver fell 2.8% to shut two-month low of $22.23 per ounce.
Unheard of global stimulus, negative staunch rates and a weakening dollar pushed gold to a yarn high above $2,075 an oz in early August.
“Weighing on gold place is power energy in US dollar index which has tested the ideal diploma since slack July. The US dollar has edged up amid rising concerns about successfully being of European economies amid rising virus cases, mixed economic data and Brexit uncertainty,” Kotak Securities stated in a existing.
“The US dollar has edged up additionally as Fed continues to emphasize on need for extra fiscal stimulus which means that monetary measures are now now not being idea of as,” the brokerage added.
Gold ETF investors comprise additionally moved to the sidelines amid the provocative fall in costs. Holdings in SPDR Gold Belief, the area’s ideal gold-backed swap-traded fund, fell 0.87% to 1,267.14 tonnes on Wednesday.
“While firmness in US dollar has pressurized gold costs, rising coronavirus spread and global economic concerns has increased gold’s safe haven allure. Gold’s provocative fall this week has dented market sentiment and whereas determined factors persists a sustained upward push would possibly perhaps presumably additionally honest now now not reach except there is a predominant correction in US dollar,” Kotak Securities stated, recommending procuring at decrease ranges. (With Agency Inputs)
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