Gold Price Eases To Rs 50,183, Silver Near Rs 60,530 As Global Rates Fall

Gold and silver prices are in a long-term uptrend due to uncertainty around COVID-19, say analysts

Gold Price In India: Domestic gold and silver prices fell on Wednesday tracking global rates of the precious metals, as the dollar benefited from caution that crept into financial markets after the first US presidential debate. Multi Commodity Exchange (MCX) gold futures (due for expiry on December 5) dropped by Rs 469 – or 0.93 per cent – to Rs 50,183, whereas silver futures (December 4) slumped to as low as Rs 60,530, Rs 1,936 – or 3.10 per cent – lower compared to their previous close. (Also Read: Is Silver The New Gold?)

In the international market, Comex gold and silver futures dipped to $1,885.80 per ounce and $23.71 per ounce at the lowest levels recorded on Wednesday. 

The US dollar index – which gauges the greenback against six currencies – was last seen trading 0.18 per cent higher, having risen as much as 0.30 per cent earlier during the session.

The rupee appreciated 0.11 per cent to settle at 73.77 against the US currency for the day.

A chaotic first US presidential debate turned investors cautious and drove them to seek refuge in the dollar, reducing gold’s appeal for other currency holders. 

Back home, spot gold settled at Rs 50,442 per 10 grams on Wednesday, and silver at Rs 59,974 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). 

Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. (Also Read: Gold “Dream Run” May Continue: Analysts)

What Analysts Say

“Market focus shifted to US economy after the first US presidential debate, efforts to reach consensus on new fiscal stimulus and some important economic indicators… While the overall trend looks positive, we may see choppiness as there are many uncertain factors like the US stimulus plan, the EU-UK Brexit negotiations and economic readings from major economies,” said Ravindra Rao, VP-head commodity research, Kotak Securities.


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