Gold Price Trend, Fall for 2nd day, Silver Future Price Rise – Gold prices in India edged lower today but remained in a narrow range after registering a moderate decline in the previous session.
MCX, June gold futures fell about ₹100 to ₹45,650 per 10 gram. Silver rates however perked up, with July futures on MCX rising 0.5% to ₹42,134. In global markets, gold prices slipped today as risk sentiment improved amid gradual reopening of many economies. A firmer dollar also weighed on prices.
gold spot price today fell 0.1% to $1,704.88 per ounce. Equities moved higher as many countries tentatively eased lockdowns this week. Among other precious Among other precious metals, platinum slipped 0.2% to $763.05 per ounce, while silver fell 0.1% to $15.01 per ounce.
Against key rivals, the US dollar gained for a fourth straight session. A firmer dollar makes gold costlier for investors using other currencies and thus hurts demand.
Meanwhile, investment demand for gold continued to remain strong. The holdings of world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.4% to 1,076.39 tonnes on Tuesday from 1,071.71 tonnes on Monday.
“Gold has managed to hold near $1700/ounce level but is struggling to gain traction due to mixed factors. Supporting price is increased US-China tensions, concerns about health of major economies amid disappointing economic data, rising virus cases worldwide, loose monetary policy stance of major central banks and continuing ETF inflows,” Kotak Securities said in a note.
“However, weighing on price is increasing efforts by countries to ease virus related restrictions to ease the economic distress and some recovery in US dollar index from recent lows,” the brokerage added.
“Gold may witness choppy trade amid mixed factors however buy on dips is recommended amid persisting worries about health of major economies.”
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers, said: “More pressure came in as two of the world?s biggest gold refiners, Valcambi and Argor-Heraeus, have restored almost all operations after Switzerland relaxed coronavirus lockdown measures after a gap of almost 6 weeks.”
