Gold prices continue to fall; tumble 12 per cent from record highs

Gold and silver prices continued their downward trend in the Indian markets today. On MCX, Gold Futures inched down by 0.36 per cent to Rs 49,471 per 10 gram extending last week’s sharp fall. On the other hand, silver slid by 1.58 per cent to Rs 58,092 per kg.

The previous week saw gold prices tumbling by Rs 2,000 per 10 gram while silver plunged Rs 9,000 per kg. As compared to its August 7, 2020 highs of Rs 56,200, gold is down by approximately Rs 7,000 per 10 gram.

The yellow metal has been under pressure in recent days amid a resurgent US dollar, which is seen by many as the preferred safe-haven asset amidst renewed risk aversion in the global financial markets. Risk sentiments have weakened with rising virus cases in Europe, which have brought about fresh lockdowns in certain countries.

Despite the recent price drop, ETF investors remained on the sidelines. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.02 per cent to 1,266.84 tonnes on Friday.