Gold, Silver Price Today: Domestic Gold Futures Tank Over 1% to Rs 51,250, Silver Holds Rs 66,900

Edited by Sandeep Singh (with inputs from agencies)

18 Sep 2020, 09:45 AM IST

International gold and silver prices were hurt by a jump in the US dollar

Gold, Silver Price In India: Domestic gold and silver futures tumbled more than 1 per cent on Thursday tracking a fall in global spot rates. A rise in the dollar after the US central bank pledged to keep interest rates low for a long time made the precious metals more expensive for those dealing in other currencies. Multi Commodity Exchange (MCX) gold futures (due for settlement on October 5) dipped 1.10 per cent - or Rs 572 - to close at Rs 51,252, and silver tanked 2.71 per cent to Rs 66,919.(Track Gold Futures Here)

In the international spot market, gold (Comex) fell as much as 1.64 per cent to $1,938.20 per ounce, whereas silver plummeted 3.89 per cent to $26.41 per ounce. (Also Read: Is Silver The New Gold?)

The dollar index - which measures the American currency against six peers - gained as much as 0.41 per cent on Thursday. The rupee edged lower to end at 73.65 against the greenback.

Back home, spot gold settled at Rs 51,511 per 10 grams for the day, and silver at Rs 65,218 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association.

#Gold and #Silver Closing #Rates for 17/09/2020#IBJA pic.twitter.com/BAXLjU2k7d
â IBJA (@IBJA1919) September 17, 2020

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 strengthened after the Federal Reserve's policy offered little fresh cues. The US central bank kept interest rate unchanged as expected, maintained an uncertain outlook for the economy, and reaffirmed that interest rates may remain low for a long time, but did not discuss any fresh measures and reemphasised on the need for additional fiscal stimulus," said Ravindra Rao, VP-head commodity research, Kotak Securities.

"Gold may witness choppy trade going forward as market players assess the US central bank's decision. However, its cautious tone on economy and the commitment to low interest rates is generally positive for gold," he said.