Gold Price Below Rs 50,000, Silver Near Rs 58,700 Tracking Global Rates

Gold And Silver Rate Today: While strength in the US dollar made precious metals more expensive for those dealing in other currencies, weakness in global equities provided some support, say analysts.

Gold Price Below Rs 50,000, Silver Near Rs 58,700 Tracking Global Rates

Gold and silver prices are in a long-term uptrend due to uncertainty around COVID-19, say analysts

Gold Price In India: Domestic gold and silver prices fell on Wednesday as global rates moved sideways following a selloff the previous day. Multi Commodity Exchange (MCX) gold futures (due for expiry on October 5) dropped by Rs 550 - or 1.09 per cent - to hit Rs 49,831, whereas silver futures (December 4) slumped to as low as Rs 58,681 from their previous close of Rs 61,213. While strength in the US dollar made precious metals more expensive for those dealing in other currencies, weakness in global equities provided some support, say analysts. At this level, gold has receded 11.32 per cent from an all-time high of Rs 56,191, registered early last month. (Also Read: Is Silver The New Gold?)

Comex gold futures - the global benchmark for the yellow metal - were rangebound between $1,877.90 and $1,909.90 per ounce, as against their previous close of $1,907.60 per ounce. Silver was stuck between $23.22 and $24.62 per ounce, compared to its previous close of $24.52 per ounce. 

The US dollar index - which measures the greenback against six currencies - climbed up as much as 0.28 per cent on Wednesday. The rupee moved within a 14-paise range against the dollar, between 73.49 and 73.63, during the session, compared to its previous close of 73.58.

The US central bank remains committed to deploying all its tools to help revive the world's largest economy from the damage caused by the coronavirus pandemic, Chairman Jerome Powell said on Monday.

Back home, spot gold quoted at Rs 50,222 per 10 grams on Wednesday, and silver at Rs 58,217 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

"Weighing on the gold price is persistent strength in the dollar index which has tested the highest level since late July. Gold's sharp fall earlier this week has dented market sentiment and while positive factors persists, a sustained rise may not come until there is a major correction in the dollar," said Ravindra Rao, VP-head commodity research, Kotak Securities.