Gold Price in India: Domestic gold futures edged lower on Wednesday (November 18) recording a fall in prices for the third consecutive day, amid muted global cues. On Multi Commodity Exchange (MCX), gold futures today fell by 0.43 per cent to Rs 50,546 per 10 gram in an early session. Silver futures on MCX also declined 0.6 per cent to Rs 62,875 per kg, both commodities extending losses for the third day. MCX gold futures were last seen trading at 1.07 per cent lower at Rs 50,222.00 while silver futures declined 1.35 per cent to Rs 62,391.00. As compared to the highs in the month of August, almost touching Rs 56,200, gold prices are now down about Rs 6,000.
– IBJA (@ IBJA1919) November 18, 2020
Domestic spot gold closed at Rs 50,627 per 10 grams on Wednesday, and silver at Rs 62,797 per kilogram – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewelers Association (IBJA).
What analysts say
“Yesterday, gold prices closed 0.13 per cent lower at 50,766 levels and silver closed 0.70 per cent lower at 63,248 levels on the back of recovery in the global equity market. Development on the front of corona virus vaccine put pressure on gold and silver as the safe haven demand may fade out. As for today traders can go for sell in gold at Rs 50900 levels with the stop loss of Rs 51200 levels for the target of 50400 levels. ” said Anuj Gupta – DVP-Commodities and Currencies Research, Angel Broking.
“Spot gold prices for 24 karat gold in Delhi fell by Rs 357, pressured by sharp rupee appreciation on central bank interventions despite firm global prices,” said HDFC Securities Senior Analyst (Commodities) Tapan Patel.
Meanwhile, the rupee rose 27 paise to settle at 74.19 (provisional) against the US dollar today for the third session in a row, supported by gains in domestic equities and weak American currency. At the interbank foreign exchange market, it touched an intraday high of 74.09.
In the international market, gold was trading higher at $ 1,882 per ounce, while silver was also quoting up at $ 24.57 per ounce. Spot gold rose 0.1 per cent to $ 1,880.81 per ounce by 0707 GMT, while US gold futures were down 0.4 per cent at $ 1,878.30. Gold shed 1.3 per cent on Monday, November 16, after Moderna said its vaccine was 94.5 per cent effective in a late-stage trial.
“There’s a lack of catalyst for gold to rally … Weighing on prices is a slight depression in inflation expectations because it’s quite clear now that the US fiscal stimulus will probably not be as sizeable as previously imagined,” said IG Markets analyst Kyle Rodda . Gold, considered a hedge against currency debasement and inflation, has gained over 24 per cent this year, mainly benefiting from the massive global stimulus.
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