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.
The global risk sentiment improved after President Vladimir Putin said Russia cleared the world’s first Covid-19 vaccine for use though the vaccine is set to enter final trial.
Some analysts say that the trigger for the collapse was the news about Russia’s Covid-19 vaccine which led to some profit-taking.
"Gold rallied sharply in last few days without any major correction and this pushed it deep into overbought territory. With US dollar index attempting some recovery, we may see some correction in gold," Kotak Securities said in a note. Gold had turned into a favourite asset class as the coronavirus pandemic pummeled the global economy, prompting central banks and governments to deploy massive stimulus. (With Agency Inputs)
