Gold and Silver Prices Increased after Sharp Declines

According to the latest news, gold and silver prices increased in Indian markets after a sharp decline in the previous session. On Multi Commodity Exchange, gold futures gained approximately 1% and settled at ₹50,219 per 10 gram, while silver futures boosted 2% and touched ₹62116 per kg. Significantly, in the previous session, the yellow metal declined by ₹2,500 per 10 gram in Indian markets. Besides, the white metal eased ₹4,600 per 10 kg after Pfizer announced promising results from a large-scale coronavirus vaccine study.

Globally, precious metal prices increased today after dropping more than 5% in the previous session. Moreover, spot gold boosted 0.5% and settled at $1,871.81 per ounce. Remarkably, during the last session, gold and silver declined $1,849.93, which is its lowers since September 28.  After U.S. drugmaker Pfizer Inc announced its experimental coronavirus vaccine was more than 90% effective, precious metals declined. Investors withdrew defensive assets and poured cash into markets that are connected to the economic extension. The Yellow Metal has dropped most of the U.S. election gains after the vaccine news.

Additionally, today, silver increased by 0.1% to $24.10 per ounce. Besides, platinum gained 0.2% at $868.30.

Besides, most Asian stock markets were higher today following an overnight rally on Wall Street that lifted U.S. stocks to all-time highs.

According to analysts, optimism of more U.S. stimulus measures helped support gold at lower levels. Moreover, concerns about rising Covid-19 infections and legal challenges to the U.S. election outcome also helped support lower levels.

Meanwhile, the FED warned that key markets’ asset prices could take a hit if the pandemic’s economic impact worsens in the following months.

Holdings in SPDR Gold Trust declined by 0.83%

Moreover, ETF investors were on the sidelines after the vaccine news. Additionally, holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, declined by 0.83%. Moreover, it settled at 1,249.79 tonnes on Monday.

According to the Association of Mutual Funds, In India, inflows into gold ETFs continued in October despite a rising equity market. Throughout the month, gold ETFs witnessed net inflows of ₹384 crores, taking the overall assets under management to ₹13,969 crores.

The Yellow Metal price decline may increase jewelry demand in India. Dhanteras and Diwali will be celebrated this week.

Furthermore, the eighth tranche of the sovereign gold bond of this fiscal is open for subscription. The issue price has been fixed at ₹5,177 per gram of the Yellow Metal. A refund of ₹50 per gram will be available to those investors applying online, and the payment against the application is made within the digital model.