Gold prices fall today after sharp jump, silver rates drop
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Gold and silver prices in India today fell after a big jump in the previous session. On MCX, August gold futures were down 0.5% to ₹47,345 per 10 gram after surging about ₹600 in the previous session. Tracking gold, silver also weakened today, falling 0.8% to ₹47,950 per kg, following a gain of ₹900 in the previous session. Gold traders are also keeping a close eye on India-China border tensions. Gold is used as a safe investment during times of political and financial uncertainty.
In global markets gold prices held steady as worries about rising coronavirus cases and geopolitical concerns offset optimism around a potential coronavirus drug and prospects of fresh stimulus from the Federal Reserve and Bank of Japan also supported the safe-haven metal.
Spot gold was flat at $1,727.22 per ounce. Among other precious metals, silver gained 0.4% to $17.46, and platinum was mostly unchanged at $820.04.
The US dollar has strengthened today after better-than-expected US economic data. US retail sales jumped a record 17.7% in May, blowing past the 8% increase analysts expected. The US dollar index, which measures the greenback against a basket of other major currencies, was up 0.07% at 97.005. Gold prices in India are influenced by global rates as well as US dollar-rupee exchange rates.
