Business Today
Loading...

Gold prices slip Rs 4,500 from record high to Rs 50,000

Gold price today: News of Russia approving the world's first COVID-19 vaccine and firm dollar triggered profit-taking in gold and silver. Gold traders turned bearish in the last 3 sessions, amid rising US-China tensions and correction in the dollar, leading to profit booking in the safe-haven asset

Rupa Burman Roy | August 12, 2020 | Updated 11:25 IST
Gold prices slip Rs 4,500 from record high to Rs 50,000
Gold, Silver prices in India on August 12: The 24-carat gold prices in the national capital rose to Rs 54,710 per 10 gram

Gold, Silver prices in India on August 12: Gold prices in Indian commodity market fell sharply by almost 3% on Wednesday, in line with weak overseas markets.  Overseas, the gold prices slipped over 5%, witnessing its worst day in over 7 years as risk appetite improved on hopes of relief package and better economic numbers.

News of Russia approving the world's first COVID-19 vaccine and firm dollar triggered profit-taking in gold and silver. Gold traders turned bearish in the last 3 sessions, amid rising US-China tensions and correction in the dollar, leading to profit booking in the safe-haven asset.

The tension between the world's two largest economies escalated after the ban of Chinese apps in the US-led to Beijing imposing sanctions on 11 US officials.

Gold price falls for 2nd day; down Rs 1,600 from record high

MCX

Extending decline for the third straight session, Gold futures on Multi Commodity Exchange were trading Rs 1,349 or 2.82% lower at Rs 50,580 per 10 gm against the previous close of Rs 51,929 per 10 gm. Gold futures touched an intraday high of Rs 51,650 per 10 gm, which was Rs 4,540 lower than its all-time high of Rs 56,191, hit last Friday.

Silver September futures also fell by Rs 4,647 to Rs 62,287 per kg today after they touched an intraday high of Rs 64,257 per kg. Silver Futures have hit a lifetime high of Rs 77,949 in last Friday's session.

Global markets

Overseas, gold prices continued to fall today. Spot gold declined as much as 2% to a near three-week low of $1,872.19, while US gold futures slid 2.4% to $1,900. Comex gold fell 2.54% to $ 1,883 per ounce today, after hitting a high of $ 1,923.30.

Silver also fell 2.8% to $24.11 per ounce after a 15% slump in the previous session.

Amid the coronavirus-driven slowdown, the bullion metal has been on a continuous rise for the year 2020, gaining about 25% value. Gold prices were hitting new record highs in global as well as domestic commodity markets last week. Rising coronavirus cases and dampened economic recovery has helped the yellow metal stay in demand.

Retail gold rate in India

The 24-carat gold prices in the national capital rose to Rs 54,710 per 10 gram. Price of 24-carat gold stood at Rs 58,040 per 10 gram in Chennai. In Mumbai, the rate was Rs 54,390 for 24-Carat gold, as per Good Returns website.

Gold prices may hit Rs 70,000 level by Diwali; should you invest?

Valuation

Amid lesser participation of investors in broader equity indices, and more inclination towards precious commodities, many market analysts have turned bullish for the metal. "Initial pullbacks can be seen but it required to clear $1980 to stabilize the momentum. Else, likely for corrective selling pressure towards $1860 followed by $1780 levels for the day," a Geojit Financial Services note says.

As per brokerage MCX Gold August, resistance is placed at 53,600 and support is at 50,450/49,200. For MCX Silver August futures, the resistance is at 70,120/72,980 and the support is placed at 60,100.

Hareesh V, Head Commodity Research at Geojit Financial Services said," Gold lost some ground after Russia announced the world's first Covid vaccine and profit booking was seen at higher levels. A recovering US dollar and gains in equities too pressured the safe haven asset. However, hopes of fresh economic stimulus measures and rising US-China tensions continue to offer lower level support to the metal.

On London spot technical outlook, he added," As long as the support of $1820 holds the downside we can expect recovery rallies in the counter. Else, it may continue with a weak bias for the day."

Anuj Gupta, DVP-Commodities and Currencies Research, Angel Broking said, "Prices are now in the overbought zone. The dollar index is recovered from lower levels due to hawkish Job data released last week. We expect gold may test Rs 52,000 levels to 51,000 levels and Silver may test Rs 69,000 levels to 70,000 levels in the short term towards the downside. Traders may book profit on higher levels and may go for sell in gold and silver, however global economic instability and geopolitical tension between US and China may work as a supportive factor for bullion in the long run. Approval for First COVID-19 vaccine by Russia's health ministry has also put pressure on the Bullions."

Precious metal prices have been surging to fresh record highs in domestic as well as international commodity markets, amid intensifying economic concerns due to the COVID-19 pandemic. In India, coronavirus cases surpassed 23 lakh mark today.

Stocks in news: HDFC, Eicher Motors, Dr Reddy, Adani Ports, JMC Projects

Share Market News Live: Sensex drops 245 points, Nifty at 11,254; Cipla, Dr Reddy, Bajaj twins top losers

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close