Gold, silver prices fall sharply as $ holds gains

(This story originally appeared in on Aug 12, 2020)

Chennai: Gold and silver prices fell for the third day in a row, amid the dollar holding on to gains and Russia’s announcement of a Covid-19 vaccine. Spot price for 24 carat gold in India fell over 5% to Rs 52,440 per 10 gram, while the price for 22 carat was Rs 48,091. The price of silver too declined, was down 7% to fall below the Rs 70,000-level per kg on Tuesday.

Kotak Securities EVP Shrikant Chouhan said: “As gold rate fell for the third day in a row, investors could have locked in profits following a record run. The current gold rally has been supported by investors, who saw the yellow metal as a safe haven amid the uncertainty caused by the pandemic. This fall could also be due to Russia’s announcement of a possible vaccine for Covid-19.”

The US index rose after US President Donald Trump considered lowering taxes on capital gains. Usually, gold tends to gain when interest rates are low and political and economic uncertainties are high.

Late in the evening, gold futures for September delivery on MCX were down 5% or Rs 2,716 at Rs 52,528 per 10 gram, while the price of silver futures, also for September delivery, was down 7% or Rs 5,469 at Rs 69,925 per kg.