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Gold and silver prices crashed in India today, monitoring an identical transfer in international charges. 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 earlier session, gold prices had edged 0.35% larger whereas silver had surged 2% or almost ₹1,500 per kg. On Friday, gold had slumped almost 1,000 per 10 gram. Last week, gold had hit a file excessive of ₹56,191 in Indian markets amid a world rally.
In international markets, gold prices plunged today, pressurized by a stronger greenback and profit-taking. Expectations of a US stimulus deal additionally boosted danger urge for food. Spot gold was down 4.2% to $1,941.71 per ounce, from final week’s file of $2,072.50.
Adding to gold’s headwinds, international equities hit multi-month highs on expectations U.S. Congress will agree an enormous stimulus deal whereas looming commerce talks raised hopes of an easing in tensions between the United States and China.
The greenback, too, retained current positive aspects, making gold much less enticing for buyers holding different currencies. A stronger US greenback makes gold dearer for holders of different currencies.
Among different treasured metals, silver plunged 7.8% to $26.88 per ounce whereas 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 to wait for a corrective dip before creating fresh long position in gold,” Kotak Securities stated in a observe.
In international markets, gold has surged over 30% this 12 months amid mounting COVID-19 instances, which have battered international economies and prompted unprecedented stimulus measures.
Still many analysts nonetheless count on a constructive trajectory for gold, as unprecedented money-printing by central banks and near-zero rates of interest pushed buyers into bullion as a hedge in opposition to potential foreign money debasement and inflation.
(With Agency Inputs)
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