Gold may remain under pressure for the time being, say analystsGold Price In India: Domestic gold and silver prices fell on Wednesday as strength in the US dollar made the precious metals more expensive for investors dealing in other currencies.
Multi Commodity Exchange (MCX) gold futures (due for expiry on December 5) dropped by Rs 518 - or 1.03 per cent - to Rs 50,008 at the weakest level of the day,whereas silver futures (December 4) slumped to as low as Rs 59,440, Rs 1,131 - or 1.87 per cent - from their previous close.
(Also Read:Is Silver The New Gold?)At 12:05 pm, gold futures traded0.84 per cent lower at Rs 50,104 while silver futures were down1.16 per cent at Rs 59,870.Those losses were in line with international prices, as Comex gold and silver futures dipped to $1,877.10 per ounce and $23.09 per ounce respectively.The US dollar index - which gauges the greenback against six currencies - was last seen trading 0.11 per cent higher, having risen as much as 0.23 per cent earlier on Wednesday.The rupee weakened to as low as 73.56 against the US currency compared to its previous close of 73.46.Back home, spot gold was at Rs 50,365 per 10 grams on Wednesday, and silver at Rs 59,021 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"Gold struggled to build the momentum above the $1,920/oz level and we saw some correction.
Gold weakened on back of a rebound in the US dollar index from recent lows.
The US dollar edged up as a selloff in equity markets increased its safe-haven appeal.
Risk sentiment weakened amid concerns about a stimulus package in the US and uncertainty around Brexit," saidRavindra Rao, VP-head commodity research, Kotak Securities."For the day, gold may remain under pressure as market players react to the abrupt halt in US stimulus talks and seek safety in the dollar however a sharp decline is unlikely," he added.