[WN] Gold and Silver Prices continued to fall in India for the fourth consecutive day on Monday, tracking global markets as risk sentiment improved after the US drug regulator authorized the use of blood plasma as a treatment option for Covid-19 patients and the dollar held firm.
On the Multi Commodity Exchange of India (MCX), October gold futures were down 0.3% to Rs 51,865 per 10 gram. September silver futures on MCX also fell to nearly 1% to Rs 66,426 per kg.
Prices of the yellow metal have gone down in four days at around Rs 1,700 per 10 gram. Gold had dropped 0.3% while September silver futures declined 1% in the previous session. Gold is down more than Rs 4,300 per 10 gram after hitting a high of about Rs 56,200 per 10gm August 7.
According to Kotak Securities, gold may continue to witness choppy trade unless there are fresh triggers but buying interest may emerge at lower levels. It added that weaker consumer demand in India and China is also weighing on gold prices.
In global markets, spot gold was down 0.3% to $1,934.13 per ounce by 0317 GMT after hitting a one-week low of $1,910.99 on Friday. US gold futures eased 0.2% to $1,942.90.
“Weighing a little bit on immediate sentiment is virus-positive news that has helped stocks and other risk assets go higher today,” Stephen Innes, chief market strategist at financial services firm AxiCorp told Reuters, adding that gold was in consolidation ahead of Jackson Hole.
Asian stocks extended gains after the US Food & Drug Administration authorized the use of blood plasma from patients who have recovered from Covid-19 as a treatment for the disease.
Investors are now waiting for US Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole on Thursday for any hints about how aggressively the central bank will try to manage the long-term recovery from the coronavirus pandemic.
“The US central bank should reiterate its pledge for ultra-low rates, providing some support for gold,” Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note. “The central bank may be expected to signal greater tolerance for above-target inflation keeping real interest rates low,” Sandhu said.
Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
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