Gold prices drop to Rs 53,815 per 10 gram, silver zooms to Rs 69,998 a kg


On MCX, gold futures for October rose 0.56% to Rs 53,573 while silver futures for September touched Rs 69,575 after climbing 0.61%

Gold prices slumped on Wednesday to Rs 53,815 from Rs 54,111 per 10 gram while silver prices continued its rally as it zoomed Rs 502 to Rs 69,998 per kg, from Rs 68,900 in the previous trade, according to Indian Bullion and Jewellers Association.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.

In New Delhi, prices of 22-carat gold remain steady at Rs 51,150 per 10 gram while prices of 24-carat was at Rs 55,090. In Chennai, the rate for 22-carat jumped over Rs 900 to Rs 51,670 while for 24-carat it was Rs 56,360. In Mumbai, 10 gram 22-carat was retailing higher at Rs 52,210, according to Good Returns website.

On MCX, gold futures for October rose 0.56% to Rs 53,573 while silver futures for September touched Rs 69,575 after climbing 0.61%.

Multi Commodity Exchange of India last week said it will launch a liquidity enhancement scheme in the newly launched segment ‘options on goods’ with gold mini contract.

The liquidity enhancement scheme, popularly known as market making, will start from September 1, said in a circular.

“The Exchange, based on a competitive bidding process, will appoint the lowest (qualified) bidder in terms of ‘bid incentive amount’ as a single designated market maker for the product till the scheme remains in force. The maximum incentive bid amount is Rs 40 lakh per month,” the exchange circular added.

In international market, gold prices rose on Tuesday as the dollar plunged to two-year lows and the US Treasury yields ticked lower, but the metal slipped below the key $2,000 an ounce mark after the S&P 500 touched record highs.

Spot gold rose 0.7% at $1,999.76 per ounce, after hitting a one-week peak of $2,014.97. US gold futures were up 0.4% at $2,006.10.

“People are watching the dollar index and its pretty alarming how its breaking down and we’re seeing all these hard assets like gold and silver rising up in tandem,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

“We’re going to run back up to the all-time highs, we had a healthy correction in the gold market, a lot of people who jumped on the bear side of the market are going to end up reversing course.”

Gold has surged 32% this year, helped by a rush to perceived safety in the metal considered a hedge against inflation and currency debasement.

“We see yield of the real rates falling again, so there is an increase in inflation expectation probably related to the aggressive fiscal stimulus measure,” said UBS analyst Giovanni Staunovo.

Capping gold’s advance, however, were gains in equities with the benchmark S&P 500 hitting record highs last seen before the onset of the coronavirus crisis in February.

Investors were now awaiting minutes from the Fed’s last meeting, due on Wednesday.

Read our full coverage on gold and silver prices

First Published: Wed, August 19 2020. 07:06 IST