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Gold price falls for sixth straight day, silver rates at Rs 58,500

Gold, Silver prices today: While Comex gold was trading flat at $1,868 per ounce, Spot gold rose 0.1% to $1,861 per ounce. US gold futures were down 0.1% at $1,863.70. Silver dipped 0.2% to $22.81 per ounce.

twitter-logoBusinessToday.In | September 28, 2020 | Updated 12:55 IST
Gold price falls for sixth straight day, silver rates at Rs 58,500
Gold, Silver prices in India on September 28: Silver September Futures traded Rs 472 lower after they touched an intraday low of Rs 59,320 per kg

Gold, Silver prices in India on September 28: Gold and Silver prices continued to fall in the domestic commodity markets for the straight sixth session on Monday.

Overseas, gold prices in the commodity markets traded muted near the opening level of Friday close and formed a Doji candle today as hopes of more stimulus in the United States faded positive sentiments.

Gold fell as equities rose over news that another coronavirus relief package talks were continuing.

On the Multi Commodity Exchange, Gold October Futures fell by Rs 149 after hitting an intraday low of Rs 49,460 against the previous close of Rs 49,650 per 10 gm.

Since the beginning of this year, the yellow metal has risen 41.5% to life-time high of Rs 56,191 per 10 gm. However, the bullion now trades almost Rs 6,700 lower than its lifetime high hit last month on August 7.

Silver September Futures traded Rs 472 lower after they touched an intraday low of Rs 59,320 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

Gold prices may fall below Rs 50,000 in coming days; should you buy or wait?

After falling to the lowest in two months in four straight sessions of fall, gold traded flat in the international market as the dollar gained on renewed hopes of more stimulus measures in the US. Gold, that has gained more than 20% higher this year, has retreated 10% since the lifetime high hit on August 7.

Hareesh V, Geojit's Head of commodity research said," A rally in the US dollar and optimism over Covid vaccine is weighing on the safe-haven demand of gold and thus the price of the commodity. However, rising US-China tensions and hopes of fresh economic stimulus measures continue to offer lower-level support. At the same time, uncertainty prevails in the metal ahead of the first presidential election debate in the US this week."

Gold price turns volatile, silver rates at Rs 59,300

While Comex gold was trading flat at $1,868 per ounce, Spot gold rose 0.1% to $1,861 per ounce. US gold futures were down 0.1% at $1,863.70. Silver dipped 0.2% to $22.81 per ounce.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said, "Last week, Spot gold ended lower by 4.2 per cent as the strengthening of the U.S. Dollar and uncertainty over further stimulus infusion by the U.S. policymakers pressurized Gold prices. The U.S. Federal Reserve projecting a paced recovery in the coming and home sales in August'20 rising to their highest levels in 14 years underpinned the Dollar. Moreover, the alarming increase in covid-19 cases in Europe and Britain pushed the greenback higher against the basket of currencies denting the appeal for the dollar-denominated Gold. However, an alarming increase in Covid-19 cases dampened hopes of economic recovery, in turn, limiting the fall in Gold prices."

US dollar slipped marginally over political uncertainties as Trump and his Democratic rival Joe Biden begin their first presidential election debate today.

He added," The dollar is also trading lower on lack of big moves ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data later in the week. Political uncertainty also pressurizes the dollar which supports the demand of Gold as a safe haven investment.

On the retail front, physical 24-carat bullion per 10 gram in the national capital fell to Rs 53,040. Price of 24-carat gold fell to Rs 52,160 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold stood at Rs 49,320 and 51,860, respectively.

Market participants await on any indications of a possible last-minute fiscal aid bill by the policymakers, questioning its timing and implementation. 

Worldwide, there were 333 lakh confirmed cases and 10.02 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 60-lakh mark and the death toll from COVID-19 infections rose to 0.95 lakh.

On gold trading below Rs 50,000/10gm, Nish Bhatt, Founder & CEO, Millwood Kane International said, "The dream run for Gold has hit a roadblock, after hitting life highs of over Rs 56,000/10gm last month, the yellow metal has been falling. Internationally, Comex Gold is trading below the $1900/oz level. Going forward, clarity on fiscal stimulus in the US, control on the number of COVID cases worldwide, or a vaccine will guide gold prices".

On London spot, Hareesh V said," Weak sentiments continue to take prices lower towards the support of $1840 and likely is to trigger a rebound. An unexpected drop below $1820 would extend further selling pressure later."

In upcoming domestic cues, RBI is set to begin its three-day monetary policy meeting on Tuesday. Overseas, the US will release its CB consumer confidence data on Tuesday, while Euro will take cues from ECB president's speech on Monday and Wednesday.

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