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    Gold prices tank 3% to Rs 50,000 on profit booking, vaccine hopes

    Synopsis

    Gold prices in the national capital declined Rs 1,317 to Rs 54,763 per 10 grams on Tuesday in line with a drop in international prices of the precious metal and a rupee appreciation, according to HDFC Securities. Silver also declined Rs 2,943 to Rs 73,600 per kg

    Reuters
    SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3 per cent to 1,257.93 tonnes on Tuesday.

    Commodity Summary

    MCX
    NEW DELHI: Gold and silver tanked in early trade on Wednesday, thanks to a massive bout of profit booking after a steep rally even as COVID-19 rampages throughout India, disrupting lives.

    Hopes of vaccine development too prompted some investors to reduce exposure to safe-haven assets.

    India has reported over 23 lakh coronavirus cases by now with more than 46,000 deaths. Gold tends to gain when interest rates are low and political and economic uncertainties are high, and vice versa.

    Gold futures on MCX were down 3.10 per cent or Rs 1,608 at Rs 50,321 per 10 grams. The counter slid to a low of Rs 49,955 during the day. Silver futures tanked 7.74 per cent or Rs 5,178 to Rs 61,756 per kg.

    Gold Rates - Spot & Futures (.995 purity) (MCX)

    DateGold Spot Price
    Rs/10 grms (AHMEDABAD)
    Gold Future Price
    Rs/10 grms Expiry: 05-Oct-2020
    18-09-20205191551730
    17-09-2020051466
    16-09-2020051842
    11-09-2020051333
    08-09-20205096750967
    04-09-20205094050740
    02-09-20205108850794
    28-08-20205098151399
    25-08-20205144051004
    21-08-20205244851990
    19-08-20205318552660


    “It is the right time for profit booking in gold and silver. The trend of bullion is still positive, but traders should adopt a cautious approach while taking any position at these higher levels. We expect some profit booking in gold and silver as in the physical market people are selling their ornaments and bars to take advantage of higher levels,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking.

    Gold prices in the national capital declined Rs 1,317 to Rs 54,763 per 10 grams on Tuesday in line with a drop in international prices of the precious metal and a rupee appreciation, according to HDFC Securities. Silver also declined Rs 2,943 to Rs 73,600 per kg

    Globally, gold clawed back some lost ground on Wednesday, after sinking 6 per cent in the previous session, as equities stalled on doubts over an additional round of U.S. fiscal stimulus and rising Sino-U.S. tensions.

    Spot gold was up 0.5 per cent at $1,920.04 per ounce by 0045 GMT, having suffered its largest one-day drop in more than seven years on Tuesday due to a bounce in risk appetite and a firmer dollar. US gold futures fell 0.7 per cent to $1,930.70.

    The dollar index held steady against a basket of major currencies.

    SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3 per cent to 1,257.93 tonnes on Tuesday.

    Silver rose 1.6 per cent to $25.18 per ounce, platinum gained 0.5 per cent to $934.52 and palladium was steady at $2,091.59.
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    3 Comments on this Story

    magicsaint37 days ago
    Why do these articles fail to also report that there is more than 60% recovery rate to new cases? In Mumbai, active cases are actually decreasing, which was once considered the hotspot. Enough of this gloom and doom narrative. All of these market moves are normal in expectation of economy recovering. Such articles only put fear in people's minds. Most people are doing their best to take precautions from COVID and life has to move on.
    flemingo2008 David38 days ago
    Gold & silver going to drop further after 15th Aug'2020, as the demand will be donw..........now those investors who invest in gold will repent later for sure
    flemingo2008 David38 days ago
    Do ot buy gold, those who rushed last week to invest in Gold, will repent after Aug'15
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