Gold and silver prices in India fell today, extending the previous session’s slump. On MCX, October gold futures were down 3% or ₹1,500 to ₹50,441 per 10 gram. Silver futures on MCX tumbled 5% or ₹5,000 per kg to ₹61972. In the previous session, gold prices collapsed nearly 6% or ₹3,200 per 10 gram while silver crashed 12% or ₹9,000 per kg. Last week, gold prices in India had jumped over ₹56,000 while silver had almost touched ₹78,000.
In global markets, gold prices continued their fall today. Spot gold sank as much as 2.1% to $1,872.61 an ounce while US futures were below $1,900. Silver futures also dropped sharply, and were down 7% at $24.2 an ounce.
On MCX, gold has support in the ₹50450/49200 zone while resistance at ₹53,600, Geojit Financial Services said in a note.
After rising above $2,000 an ounce last week, gold’s has suddenly collapsed as US bond yields advanced and the dollar rebounded. The dollar index today held steady against a basket of major currencies.
The sharp drop in gold prices has triggered outflows from gold ETFs. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, said its holdings fell 0.3% to 1,257.93 tonnes on Tuesday.