top of page
Laxmi Diamonds.png

Gold prices today down 1,000 from highs, silver rates plunge

Gold and silver prices in India continued their slide today, tracking similar global trend. On MCX, October gold futures prices were down 0.40% today to ₹38,747 per 10 grams, off over ₹1,000 from all-time highs of ₹39,885 hit earlier this week. Silver prices saw a sharper fall, with futures on MCX sliding 1.3% to 48,815 per kg, down over 2,500 from recent high of ₹51,489. Improved risk sentiment across the globe and a pullback by the rupee from recent lows put pressure on gold prices.

In global markets, gold prices extended losses after Thursday's sharp losses and were down 0.2% to $1,516.02. On Thursday, gold prices slumped over 2% and silver fell over 4% on Thursday risk sentiment improved after stronger-than-expected US economic data and hopes of a thaw in the US-China trade war.

Improved risk sentiment has pressurized gold and silver prices, Kotak Securities said in a note. Profit-taking by investors after recent highs also hurt gold, silver prices, the brokerage added.

Risk sentiment improved after data released on Thursday showed US private employers' payrolls rose and the growth of the US services sector accelerated in August. Hopes of a thaw in US-China trade war also boosted stock markets. US and China are set to restart their trade talks early next month.

But many analysts expect gold prices to remain supported by increasing concerns about global economy and lack of confidence of quick breakthrough in US-China trade deal.

Ray Dalio, the billionaire founder of the world’s largest hedge fund, has been bullish on gold, which he says will be in demand as investors seek alternative forms of money as central bank stimulus nears the limit of its effectiveness. Back in India, record high gold prices have hurt demand for the yellow metal. India is one of the largest consumers of gold and bought 760.4 tonnes in 2018, below a 10-year average of 838 tonnes, according to World Gold Council. This year, in volume terms, gold consumption in India could fall further as a 25% surge in prices continue to put pressure on demand. Jewellers have also reported higher supply of old jewellery as some customers take advantage of high prices.

Courtesy - Livemint



bottom of page