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Gold prices fall Rs 2,200 today; Silver rates also drop
- The improvement in gold prices is expected to raise the demand for jewelry
- The government may make the BIS hallmark mandatory for gold jewelry
In India gold and silver prices today fell further, spreading their recent decline. Restrained global prices and an appreciation in rupee's value against the US dollar pressurize prices of gold and silver prices. On MCX, October gold futures prices today traded 0.20% lower at around ₹37,650 per 10 grams, ₹2,200 less than last week's highs of ₹39,885. Silver got hurt more. Today silver futures on MCX are 0.2% down to ₹47,047 per kg. Now silver prices are around 8% lesser than last week's high of ₹51,489.
Gold prices remained restrained at $1,499 an ounce while silver fell to $18.08 per ounce, in the global market. Broad improvement in risk appetite has put pressure on gold prices. Earlier this month, globally gold prices are down about over 4% from $1,550 levels.
Kotak Securities said in a Thursday note, "ETF investors have moved to sidelines awaiting fresh cues. Gold may trade sideways amid firmness in the equity market."
Kotak Securities said, "Silver has turned choppy after recent sell-off but has managed to hold near $18/oz level. Silver ETF investors also moved to sidelines after brief outflows."
The rupee has also strengthened against the US dollar to a one-month high of 70.96 levels. Further pressuring the domestic gold prices. A higher rupee makes imports of gold denominated in dollars cheaper.
Earlier this week the US agreed to delay another round of tariffs on Chinese imports by two weeks to October 15 while China has dropped additional tariffs imposed on some items of imports from the US. the United States agreed to delay another round of tariffs on Chinese imports by two weeks to October 15.
Kotak Securities analysts assume gold prices to remain supported, saying that "global growth worries and trade concerns are far from over."
in India, the improvement in gold prices is expected to raise the demand for jewelry. In another development, the government is expected to approve a proposal to make the BIS hallmark mandatory for gold jewelry before Diwali, Press Trust of India reported. At present, the Gold hallmarking, is voluntary in nature, is a certification of purity of the precious metal.
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