Gold prices today fall sharply, down ₹6,000 from record highs; silver plunges
Gold and silver fell sharply in Indian markets, tracking softness in global rates. On MCX, December gold futures were down 0.8% to ₹50249 per 10 gram, their second fall in three days. Silver futures on MCX plunged 2.8% to ₹60700 per kg. In the previous session, gold had surged 1% or about ₹500 while silver had jumped ₹1,900 per kg. Gold has given up significant gains after hitting a record high of ₹56,200 on August 7. Earlier this week, it had dipped below ₹49,500 before seeing some recovery. In global markets, gold prices were muted today. Spot gold was down 0.1% at $1,896.03 per ounce. Hopes of a US coronavirus aid deal supported gold at lover level. Silver rose 0.2% to $24.22 per ounce, platinum fell 0.1%, to $883.25 and palladium gained 0.5% to $2,319.59. U.S. House Speaker Nancy Pelosi said she was "hopeful" an agreement could be reached, though her party and Republicans remain miles apart on their proposals. On Tuesday, a top aide to Democratic House Speaker Pelosi said the lawmaker had spoken for a second straight day with Treasury Secretary Steven Mnuchin, and the two agreed to continue negotiating, raising hopes they could break a months-long impasse. The dollar index against a basket of currencies was flat at 93.817. A rebound in US dollar had battered gold prices last week. "With some signs of correction in US dollar, gold could see some extended gains however $1900/ounce will be a key barrier to cross before bulls re-enter with full vigor," said Kotak Securities in a note. Donald Trump and Joe Biden today traded personal barbs in the first of three debates ahead of the November 3 vote. There was little initial reaction at the end of the debate in equity markets. "We believe that the outlook for gold will be primarily determined by safe-haven seekers. Silver should meanwhile continue moving in gold’s slipstream," said Carsten Menke of Julius Baer. (With Agency Inputs)