Gold Futures Dip To Rs 50,793, Silver Tumbles To Rs 67,340 As Dollar Firms

Gold Price In India: Domestic gold and silver futures slumped on Tuesday tracking sharp weakness in global spot rates as the dollar moved higher, making the precious metals for those dealing in other currencies. Multi Commodity Exchange (MCX) gold futures - due for a delivery on October 5 - closed 0.53 per cent (Rs 272) lower at Rs 50,793, having declined to as low as Rs 50,650 during the session. MCX silver futures (December 4) tumbled 1.36 per cent (Rs 931), settling at Rs 67,340 compared to their previous close of Rs 68,271. (Also Read: Is Silver The New Gold?)

In the international spot market, precious metals moved lower as a strong dollar outweighed lingering economic concerns and investors awaited policy cues from the European Central Bank.

Comex gold fell as much as 1.13 per cent to $1,912.40 per ounce, whereas silver fell to as low as $26.32 per ounce, down 1.46 per cent from its previous close.

Back home, spot gold settled at Rs 51,018 per 10 grams on Tuesday, and silver at Rs 65,017 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. (Also Read: Gold "Dream Run" May Continue: Analysts)

What Analysts Say

"Gold has turned rangebound amid mixed cues and this trend may continue unless there are fresh triggers, possibly from the ECB's monetary policy meeting or US inflation data. Gold may witness choppy trade as market players assess the relentless rally in the US equity market and the sharp fall in US dollar," said Ravindra Rao, VP-head commodity research, Kotak Securities.

"However, we expect buying interest to emerge at lower levels as increasing challenges to the global economy may improve its safe-haven appeal.”