Gold prices fall, down over Rs 4,000 per 10 gram from this month’s high

MUMBAI: Gold and silver prices in Indian markets ended this week on a weak note, tracking softer global rates. On MCX, October gold futures fell 0,3% to Rs 52,001 per 10 gram on Friday while September silver futures declined 1% to Rs 66,954 per kg. On a week-on-week comparison, gold and silver prices were mostly flat. But from August 7th highs of about Rs 56,200, gold is down more than Rs 4,000 per 10 gram.
“This week we saw a consolidation in MCX gold, but the main fundamentals have not changed and broader bullish outlook is sill intact. The US fiscal stimulus package is still coming in and its very pre-mature to say that the grim global economic outlook will recover, so for longer term, buy on dips is recommended around Rs 50,000,” said Rahul Gupta, Head of Research at Emkay Global Financial Services.
In global markets, a strong rebound in the dollar and a recovery in US business activity somewhat dented gold’s appeal this week though many analysts think longer-term uptrend in gold prices is still intact. Spot gold dropped to $1,942 an ounce in US markets on Friday. Prices have retreated sharply from above $2,000 hit earlier this week amid delayed stimulus package agreement, a bounce in the U.S. dollar and real rates.
On Friday, the Nasdaq and S&P 500 hit record highs and the dollar broke an eight-week losing streak against a basket of currencies, supported by a jump in U.S. business activity and home sales. A stronger US dollar makes gold more expensive for holders of other currencies.

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