After Diwali: Gold misses fireworks, tumbles by 1000

Source :Sify
Author :Finance Desk
Last Updated: Tue, Nov 24th, 2020, 13:45:19hrs

Mumbai: Gold rates across the country tumbled by a margin of Rs 1,000 as of Tuesday.  

According to data from that tracks rates across India and Gulf, major associations and jewellers quoted a lower opening rate for Tuesday.  

On an average, gold rates for 24 Karat or bullion was reportedly down by Rs 945 per ten grams. Rates for 22 Karat were down by Rs 875 per ten grams. tracks rates exclusive of GST and making charges.  

On the MCX, Gold futures for December ended 0.84 percent lower to quote 49,062 per ten grams.  

The movement in rates arrives on the heel of a weak spot trading session. In trade on Tuesday, US Spot markets hovered in range of $1,821.50 to $1,839.05 per troy ounce. Gold surpassed a crucial $1,850 support line which it entered on 21 July 2020. This was the same support line that Gold tested in September and soon bounced back.  

Silver prices too reported a correction. Retailers quoted Rs 6,075 per kilogram (Sify). On the MCX, Silver futures for December quoted Rs 59,902 per kilo (down by 1.03 percent or Rs 623 per kilo).

The next fortnight could see some more movement in Gold thanks to factors such as US GDP preliminary estimates (25 Nov), US employment figures for Nov (2 Dec) and US inflation numbers (10 Dec).  

The trading in Gold is reportedly in stark contrast to the strong gain made by the equities segment that have seen strong rebound afternews of probable Covid-vaccines (Moderna & Pfizer).  

According to a popular theory, a long-drawn transfer process by the current US President could have been value-accretive for Bullion. However, with President Donald Trump and his team hinting of a smooth transfer the equities market has risen even as Gold markets have slipped.  

Image: Paul Faith for AP.