“Silver along with gold has corrected from recent highs amid reduced safe-haven buying,” Kotak Securities said in a note. Profit-taking after recent sharply rally and outflows from ETFs have hurt silver prices, the brokerage added, saying: “Silver has lost its upward momentum amid correction in gold and lack of fresh ETF impetus.”
The brokerage expects gold and silver prices to remain choppy in the near term, depending on the risk sentiment.
Gold and silver prices in India continue to be under pressure, tracking a weak global trend and a stronger rupee. On MCX, October gold futures prices were down 0.2% to ₹37,877 per 10 grams. Gold prices are now down about ₹2,000 from last week’s high of ₹39,885. Tracking a similar weak trend, silver prices continue to fall. Silver futures prices on MCX were today down 0.60% to ₹47,518. Silver rates are now down about ₹4,000 from their last week’s high of ₹51,489.
In global markets, gold prices today fell 0.2% to $1,493.65 an ounce. They are now down sharply from recent highs of $1,550 as an improvement in risk appetite took some shine away from safe-haven assets like gold.
Global risk sentiment has improved on hopes for a thaw in US-China trade frictions and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks. Equity markets have rallied over the past few days across the globe.
“Gold has corrected sharply in last few days amid stability in equity market and sharp rise in US bond yields. Risk sentiment has improved amid prospect of US-China trade talks in early October and monetary easing measures by some central banks,” Kotak Securities said.
Comments are closed.