Silver market took a beating with May futures crashing 3% to ₹39,758 per kg. Gold prices in India had surged sharply lastweek rising about ₹3,000 per 10 gram in tandem with a rally in global rates.
Gold prices slip sharply in India today with Junefutures on MCX falling 0.6% to ₹43,302 per 10 gram, extending losses tothe 2nd session.
In global markets, gold prices moved higher, lifted by demand for safe-haven bullion as increasing coronavirus cases across the world stoked fears of more economic damage. Spot gold was up 0.3% at $1,621.85 per ounce. A weakdollar also helped lift golddemand, making bullion cheaper for investors holding other currencies.
Among other precious metals, platinum slipped 0.5% to $738.05 per ounce, while silver eased 0.8% to $14.36 per ounce.
The head of IMF on Friday warned that countries mustrespond with “massive” spending to avoid a cascade of bankruptcies. Asian-shares were sharply lower today while oil pricestook another beating. Dow futures were also lower.
Reflecting the investor sentiment, the holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 1.17% to 964.66 tonnes on Friday.
US President DonaldTrump on Friday signed a $2 trillion economicstimulus package, the largest in U.S. history, while the Federal Reserve has pledged unlimited bond purchases.
In India, as the physical trading of gold came to a standstill due to the 21-day lockdown, massive discounts were offered over international prices, according to a Reutersreport. Last week, discounts rose to their highest since midSeptember, at $48 an ounce, the report said. The domestic price includes a 12.5% import tax and 3% GST.
Gold market participants remained concerned about a supply squeeze following a sharp divergence in London and New York prices, as the novel coronavirus 2019 closed precious metals refineries. However, the historic gold squeeze seems to be easing. The spread between London and New York prices stood at about $35 an ounce on Monday, compared with more than $60 last week.
