Gold prices in India edged lower today, tracking a drop in global rates. On MCX, October gold futures fell 0.04% to ₹52,207 per 10 gram. Silver futures however edged 0.35% higher to ₹67403 per kg.
In the previous session, gold futures had tumbled ₹760 or 1.5% per 10 gram. while silver had crashed 5.5% or ₹4,000 per kg. On the MCX, gold has support in the ₹51,400/49,200 zone while on the higher side, resistance at ₹53,250.
Last week, gold had tumbled over 4% in India. And from August 7th highs of about ₹56,200, gold is now down about ₹4,000 per 10 gram.
In global markets, gold prices fell today after logging worst week in five months. Spot gold was down 0.2% at $1,941.90 an ounce. Gold prices had slumped 4.5% last week, its biggest weekly decline since March. Among other precious metals, silver today slipped 0.6% to $26.25 per ounce while platinum rose 1% to $945.55.
A softer dollar helped cap losses for gold. A weaker greenback makes gold cheaper for holders of other currencies. US treasuries were steady, with the 10-year yield at 0.70%. Against a basket of currencies the dollar traded at 92.985.
The recent volatility in gold prices hit the investment demand in gold. The holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund or gold ETF, fell 0.30% to 1,248.29 tonnes on Friday.
Gold traders will be awaiting the minutes from the Federal Reserve’s most recent policy meeting for more clues into the policy stance of the US central bank. The minutes will be released later this week.
Also, on the horizon, the Democratic national convention in the US begins today. It culminates in a speech from presumptive nominee Joe Biden late on Thursday.
Traders are also watching the relationship between US and China amid President Donald Trump’s re-election campaign. Trump on Friday officially ordered the Chinese owner of the popular music video app TikTok to sell its U.S. assets, citing national security grounds.
On the other hand, the US and China delayed a Saturday review of their Phase 1 trade deal, citing scheduling conflicts, according to reports.
