According to the latest news, gold prices in India declined to the lowest in over a month. On Multi Commodity Exchange, gold futures dropped by 0.14% and settled at Rs 48,636 per 10 gram, extending their fall to the third day. Meanwhile, silver futures increased by 0.3% and touched Rs 64,984 per kg. Significantly, in the previous session, the yellow metal had dropped by Rs 500 per 10 gram while the white metal had eased by Rs 1,700 per kg.
Furthermore, in global markets, the yellow metal prices fell sharply amid a stronger U.S. dollar. Spot gold dropped by 0.5% and settled at $1,819.77 an ounce, extending the previous week’s 1% decline. Among other precious metals, for instance, silver and palladium were also under pressure. The white metal dipped 0.6% and touched $24.57 an ounce, while palladium declined 0.4% and settled at $2,377.49. Notably, platinum witnessed gains and boosted by 0.4% to $1,078.19.
Furthermore, as we know, in India, gold prices declined by nearly 25% in 2020, while it has dropped by 3% so far this year, tracking weak global prices. Besides, higher U.S. Treasury yields and the greenback put pressure on the yellow metal.
SPDR Gold Trust increased by 1.4% and settled at 1,177.63 tonnes
According to analysts, the yellow metal is likely to buy support from massive stimulus packages from central banks and governments. Moreover, on Friday, SPDR Gold Trust, holdings of the world’s largest gold-backed exchange-traded fund, boosted by 1.4% and settled at 1,177.63 tonnes.
Kodak Securities announced that gold has to far managed to hold above $1,800/oz level. However, it is struggling to gain momentum over the $1,860/oz level. According to Kodak Securities, they may see choppiness in the yellow metal. However, the general bias remains on the upside amid boosting virus risks and hopes of continuing stimulus measures.
Brokerage reported that the white metal might remain choppy unless there is a clear trend in gold prices. However, general bias may be on the upside as U.S. stimulus expectations may support commodities at large.
Furthermore, it is essential to note that the U.S. dollar increased to its highest in four weeks versus other currencies. On January 18, the greenback boosted by 0.03% and settled at 90.793. Remarkably, last week, U.S. President-elect Joe Biden announced he wants 100 million coronavirus vaccine shots during his first 100 days in office. Earlier, he had unveiled a $1.9 trillion stimulus package proposal to help the economy. A stronger U.S. currency makes gold expensive for holders of other currencies.
Additionally, the World Gold Council expects gold demand to recover in India in 2021. According to P.R Somasundaram, the World Gold Council’s managing director for India, pent-up demand and vaccines’ rollout is likely to increase sales.