Gold and silver prices continued to decline for the second in Indian markets. On MCX, October gold futures were down ₹300 to ₹52,320 per 10 gram. Tracking gold, silver futures were also down 0.8% to ₹67,440 per kg. In the previous session, gold had slumped 1.8% or ₹950 per 10 gram while silver had crashed 2% or ₹1,400 per kg. Gold prices have been volatile in India after hitting a new high of ₹56,191 per 10 gram.
In global markets, gold rates today recovered some ground after slumping more than 3.5% to a near one-week low in the previous session. Today, spot gold was up 0.5% at $1,940 per ounce. Among other precious metals, silver rose 0.8% to $26.94 per ounce while platinum climbed 0.3% to $934.01.
The reason for gold crash’s in the previous session: Minutes from the latest Fed meeting gave few clues about whether an even more dovish shift in its policy framework is possible in the 18 September meeting.
Gold’s advance today was limited by a higher dollar, which makes the precious metal expensive for holders of other currencies.. The dollar index today rose 0.2% after sharp gains in the previous session against its rivals,
Higher treasury yields also capped gold’s advance. Higher yields increase the opportunity cost of holding non-yielding assets such as bullion. Minutes showed US Fed skeptical about capping government bond yields as a means of encouraging recovery and investment.
Many analysts still remain bullish on gold which is up 27% this year in global markets. Spot gold hit an all-time high of $2,075.47 on August 7 as the dollar weakened and real interest rates fell well below zero. But since then gold has been on a wild ride.