On September 23, Thursday, Gold prices fell and traded under the key level of 50,000 in the Indian commodity market.
Nish Bhatt, Founder and CEO at Millwood Kane Group of Companies reported that the dream run for the yellow metal had reached a roadblock, after touching life high of above Rs 56,000 per 10 grams, the yellow metal price has been decreasing. According to him, as the dollar index is near an 8-week high against other currencies, a rally in the U.S. Dollar affects Gold’s prices. Fears of a second lockdown in Europe are also one reason for the fall in Gold.”
Globally, Comex gold is trading under the $1,900/oz level.
On MCX (Multi Commodity Exchange), Gold October futures decreased by Rs 166 and settled at 49,341. The yellow metal reached an intraday low of Rs 49,248 against the previous close of Rs 49,508 per 10 grams.
The yellow metal has increased by 41.5% to an all-time high of Rs 56,191 per 10 grams year to date. However, the yellow metal trades nearly Rs 6,000 lower than its all-time high hit last month.
Silver September futures decreased by Rs 1,800 and settled at Rs 56,668
Meanwhile, Silver September futures decreased by Rs 1,800 and settled at Rs 56,668 per kg today after they reached an intraday low of Rs 56,020 per kg. On August 7, While metal futures reached an all-time high of Rs 77,949.
In the international market, the yellow metal continued weakness for the fourth session and dropped to its weakest level in more than two months. Meanwhile, the dollar index climbed to more than eight-week high, making bullion more expensive for holders of other currencies.
Moreover, Spot gold fell 0.4% to $1,885.72 per ounce. Comex gold was trading flat at $1,859 per ounce, while U.S. gold futures decreased by 0.3% to $1,863.60. The while metal dropped 5.3% to $21.66 per ounce.
According to Hareesh V, Geojit’s Head of commodity research, Gold may continue to be supported by renewed US-China tensions and hopes of new economic stimulus measures amid rising virus cases across the globe. However, a strong U.S. dollar and optimism over the COVID vaccine continue to hit the commodity’s safe-haven demand.
On the retail front, physical 24-carat gold per 10 gram in the national capital dipped to Rs 53,470. The value of 24-carat gold was at Rs 52,480 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold was at Rs 50,010 and 52,080, respectively.