Gold prices today fall for second day, silver rates slump

Silver and gold prices today were lower today in Indian markets as optimism around COVID-19 vaccines roll-outs offset hopes of a US stimulus package being passed this week.

On MCX, gold prices edged 0.05% lower to higher to ₹49,149 per 10 gram while silver rates fell 1% to ₹63,070 per kg. In the previous session, gold futures had declined 0.2% to ₹49,209 per 10 gram while silver edged 0.3% higher. However, for the week, gold had logged gains of about ₹1,200 per 10 gram.

In international markets, spot gold today remained flat at $1,837 per ounce. Britain is set to become the first country to roll out the Pfizer/BioNTech COVID-19 vaccine this week. Also later this week, the US Food and Drug Administration meets to discuss the vaccine made by Pfizer/BioNTech. A top US official had earlier said that if the vaccine is authorized, distribution could begin within 24 hours.

The prospects of more US stimulus brightened after payrolls figures released on Friday showed a less-than-forecast increase. Meanwhile, a bipartisan group of lawmakers worked to put the finishing touches on a new $908 billion bill. Gold tends to benefit from stimulus measures as it raises the prospect of inflation which bullion is used to hedge against. Gold prices in India had hit a high of ₹56,200 in August before losing momentum amid vaccine optimism and consequent rally in risk assets.

Gold traders will be looking forward to outcome of European Central Bank policy decision later this week. ECB is widely expected to increase and extend its pandemic bond-buying program.

ETF outflows which show weaker investor interest. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, fell 0.6% to 1,182.70 tonnes on Friday.

Silver however remains supported by general optimism about Chinese economy and recovery in industrial activity across major economies, says Kotak Securities. “Silver may witness choppy trade along with gold amid lack of major triggers however we do not expect a sustained rise unless ETF buying resumes strongly,” it added.

Analysts say that though gold has recovered from recent lows and remains supported by weaker US dollar, further gains depend on concrete measures on stimulus front.

Gold prices today fall for second day, silver rates slump via @goldsilverrepor
  • Save

Leave a Comment

Copy link