Gold prices fall sharply, silver plunges

October 06, 2020 00:00:00

NEW DELHI, Oct 05 (The Economic Times): Gold and silver prices fell sharply in Indian markets on Monday, tracking softness in global rates.

On MCX, December gold futures were down 0.9 per cent at 50,130 per 10 gram while silver futures declined 0.88 per cent to 60,605 per kg. In the previous session, gold prices had risen 0.4 per cent on MCX while silver had jumped about 1.6 per cent.

Commodity exchange MCX was closed on Friday due to a public holiday. Gold and silver prices in India have sharply corrected from their August highs of about 56,200 per 10 gram and about 80,000 per kg respectively in tandem with softness in global rates.

In global markets, gold prices were little changed changed today as investors focused on Donald Trump's health. Gold prices were steady around the $1,900 level while US gold futures were down 0.1 per cent at $1,906.30. Asian stocks were mostly higher, along with US futures, as traders reacted to the possibility President Donald Trump may be able to leave hospital as soon as on Monday.

Doctors on Sunday insisted that Trump, who tested covid positive last week, is doing well and could be discharged as soon as today.

Gold prices were supported by a softer dollar that makes the precious metal cheaper for holders of other currencies. The dollar index was down 0.12 per cent against rivals.

Among other precious metals, silver rose 0.8 per cent to $23.89 per ounce, platinum eased 0.1 per cent to $881.51 and palladium was little changed at $2,307.64

ETF investors continued to remain on the sidelines, awaiting the price direction of gold. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.05 per cent to 1,275.60 tonnes on Friday.

Also, speculators reduced their bullish positions in COMEX gold and increased them in silver contracts in the week to September 29, the US Commodity Futures Trading Commission (CFTC) said.

Gold traders will keep an eye on addresses from top global central bankers. Fed Chair Jerome Powell and ECB Chief Economist Philip Lane are scheduled to deliver keynote addresses at the NABE conference on Tuesday.