Gold and silver prices in India fell sharply today amid falling global rates. On MCX, gold futures fell 0.85% to ₹51,391 per 10 grams as silver futures plunged 1.4% to ₹67798 per kg. Gold prices have traded in a very narrow range over the past two weeks in India, having corrected sharply from last month’s highs of ₹56,200. In the previous session, gold edged up 0.1% while silver closed flat.
In global markets, gold prices fell today amid a stronger US dollar. But the Federal Reserve’s promise to keep interest rates near zero for up to a few years and worries about the global economic recovery have helped prop up gold at lower levels. Spot gold was down 0.3% to $ 1,954.42 an ounce after hitting a nearly two-week high of $ 1,973.16 in the previous session.
Among other precious metals, silver fell 0.8% to $ 27 an ounce while platinum fell 0.9% to $ 959.58.
The dollar index rose 0.4% against its rivals, making gold more expensive for holders of other currencies.
Overnight, Federal Reserve policymakers signaled that their benchmark short-term interest rate would likely stay at zero until at least 2023 and possibly longer. Falling interest rates reduce the opportunity cost of holding non-performing bullion.
“Amid other factors, gold remains supported by mixed US economic data, US-China tensions and Brexit uncertainty. The delay in the US stimulus is also weighing on market sentiment,” said Kotak Securities in a September 16 memo.
ETF outflows, however, show lower investor interest in gold. Gold holdings with SPDR ETF, the world‘s largest exchange-traded fund or gold ETF, fell 0.42 tonnes to 1247.569 tonnes, the lowest since July 31, “the broker added. .
Fed chief Jerome Powell said while the economy has rebounded faster than expected, the labor market is still suffering and the outlook is uncertain.
Commenting on gold prices, Reserve Bank of India Governor Shaktikanta Das at an event on Wednesday said that precious gold prices had moderated after hitting a record high in during the first week of August 2020 on the outlook for economic recovery.
At the same time, the White House also indicated on Wednesday that it was prepared to increase its bid in talks with the Democrats and that Senate Republicans are expected to move forward to seal a stimulus deal within the next week. to 10 days. (With contributions from the agency)