Gold prices fall for the 5th time today, down by ₹7500 from record highs, silver prices drop as well

Gold and silver prices have extended their decline in the Indian markets today as precious metals were weighed down by a much stronger US Dollar. On MCX, gold futures fell by 0.33% to 48,702 per 10 gram on the fifth straight day of decline. On the other hand, silver rates plunged by 1% to 65,866 per kg. In the previous session, gold had been seen to decline by 0.11% while silver by 0.64%. Gold rates are now down by about 7,500 from their August highs of 56,300.

The gold rates in the global markets declined after being pressurized by a stronger US dollar today. Spot gold was seen to ease by 0.3% to $1,839.21 per ounce. A stronger dollar makes gold more expensive than any other currency holder. The dollar index rose by 0.12% to 90.745. The US Federal Reserve left its key overnight interest rate near zero and was, therefore, able to keep its monthly bond purchases the same.

Other precious metals such as silver or platinum were also under pressure. Silver lost by 0.2% to $25.18 an ounce while platinum fell by 0.2% to $1,063.76. Gold ETF flows showed very weak investor interest. The world’s largest gold-backed exchange-traded fund holdings, SPDR Gold Trust, fell by 0.3% to 1,169.17 tonnes on Wednesday. Meanwhile, the global stocks were trying to extend their retreat from last week’s all-time high amidst any concerns about valuations.

Gold traders will be watching out for the fourth-quarter US GDP, initial jobless claims, and new home sales are going to be released today. According to a note by Kotak Securities, apart from any virus related developments that are also denting market sentiment is mixed economic data from major economies.

Gold, in any global market, has been down by about 3% so far this month. In fact, its performance has been worst in January since 2011.


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