Gold Prices Today Crash ₹2,500 per 10 gram, Silver Slumps ₹5,000
- by Satakshi-Gauri
- Aug 17, 2020 12:04
Gold and silver prices crashed in India today, tracking a similar move in global rates. On MCX, October gold futures fell 5% to ₹52,390 per 10 gram - their second decline in three days. Silver futures on MCX fell 7% to ₹69,980 per kg. In the previous session, gold prices had edged 0.35% higher while silver had surged 2% or nearly ₹1,500 per kg. On Friday, gold had slumped nearly 1,000 per 10 grams. Last week, gold had hit a record high of ₹56,191 in Indian markets amid a global rally. In global markets, gold prices plunged today, pressurized by a stronger dollar and profit-taking. Expectations of a US stimulus deal also boosted risk appetite. Spot gold was down 4.2% to $1,941.71 per ounce, from last week's record of $2,072.50. Adding to gold's headwinds, global equities hit multi-month highs on expectations U.S.
Congress will agree on a massive stimulus deal while looming trade talks raised hopes of an easing in tensions between the United States and China. The dollar, too, retained recent gains, making gold less attractive for investors holding other currencies. A stronger US dollar makes gold more expensive for holders of other currencies. Among other precious metals, silver plunged 7.8% to $26.88 per ounce while platinum dropped 4.8% to $939.19 per ounce "If US currency manages to extend recovery, gold may fall further. Hence we suggest market players wait for a corrective dip before creating a fresh long position in gold," Kotak Securities said in a note. In global markets, gold has surged over 30% this year amid mounting COVID-19 cases, which have battered global economies and prompted unprecedented stimulus measures. Still, many analysts still expect a positive trajectory for gold, as unprecedented money-printing by central banks and near-zero interest rates pushed investors into bullion as a hedge against possible currency debasement and inflation.
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