Gold and silver prices today edged lower in Indian markets after sharp gains in the previous session. On MCX, August gold futures fell 0.06% to ₹46,072 per 10 gram, following a ₹400 rally in the previous session. Silver futures on MCX declined 0.12% to ₹48,127 per kg after surging about ₹900 in the previous session. Gold prices in India have fallen about ₹2,000 per 10 gram from last month’s record high of about ₹48,000 as improved global risk sentiment took some shine off the safe-haven appeal of gold.
In global markets, gold prices rose today, lifted by a weak US dollar and worries about a continuous rise in coronavirus cases globally. Spot gold was up 0.4% at $1,700.78 per ounce. The US dollar was near near a three-month low against a basket of other currencies, making gold cheaper for holders of other currencies. Among other precious metals, silver declined 1.1% to $17.66, while platinum ticked up 0.1% to $833.10.
Gold traders are looking ahead to the outcome of US Fed’s two-day policy meeting that ends tomorrow. Gold tends to gain when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion. Gold is also seen as a hedge against inflation.
Indicative of the improved global risk sentiment, holdings of world’s largest gold-backed exchange-traded fund or ETF, SPDR Gold Trust, dipped for the third day in a row. Its holdings fell 0.2% to 1,125.48 tonnes on Monday.