Gold, Silver Price In India: Domestic gold and silver futures slumped on Thursday tracking weakness in global rates, as the dollar strengthened after the US central bank pledged to keep interest rates low for a long time. Multi Commodity Exchange (MCX) gold futures (October 5) fell 1.05 per cent to Rs 51,279 at the weakest level during the session, and were last seen quoting at Rs 51,495 around midday. Silver hovered near the Rs 67,850 mark, having plunged as much as 1.86 per cent to Rs 67,500 earlier. (Track Gold Futures Here)
Globally, spot gold, trading on Comex, declined as the dollar pushed higher after the Federal Reserve painted a favourable economic recovery picture but stopped short of offering concrete signals on further stimulus. It fell as much as 1.39 per cent to $1,943.10 per ounce. Spot silver dropped as much as 2.22 per cent to $26.87 per ounce. (Also Read: Is Silver The New Gold?)
The dollar index - which measures the dollar against six currencies - gained as much as 0.41 per cent during the day.
Back home, spot gold quoted at Rs 51,431 per 10 grams in opening trade on Thursday, and silver at Rs 64,821 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association.
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 weakened as the dollar edged up after the Fed's decision. The US currency strengthened as there were little fresh cues from the US central bank, which kept interest rate unchanged as expected, maintained an uncertain outlook for the economy and reaffirmed that interest rate may remain low for a long time but did not discuss any fresh measures and reemphasized on need for additional fiscal stimulus," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may witness choppy trade as market players assess the Fed's decision. However, the central bank's cautious tone on the economy and commitment to keep interest rate low is generally positive for gold."