The prices of gold in global markets are estimated to be at their worst performance in six years. The gold rates have declined below the key support level of $1800.
In 2020, for the first time ever, the prices of gold had breached Rs. 50,000 in the futures market. The reason behind this surge was the soft US dollar, the outbreak of the coronavirus pandemic, and the expectation of more stimulus measures. The prices of spot silver prices had risen by 7.2% to $22.8366 an ounce, which is the highest after 2013.
Gold Prices Fall To Their Lowest In 6 Years
Today, spot gold fell 0.4% to $1,796.47 per ounce, thanks to the pressure by a higher dollar and firm Treasury yields. In the global markets, the prices went down by more than 5% this year.
Whereas, spot silver went down by 0.8% to $22.62 an ounce, platinum declined by 0.7% to $961.35, and palladium by1.2% to $1,960.31. This is the worst price in many years.
As per reports, in the Indian markets, gold prices declined by 0.4% to ?47,650 per 10 gram. Analysts have stated that the prices have gold have been affected by Omicron and inflation concerns and US Federal Reserve’s tapering move.
Weak US Dollar prices Affecting Gold Prices
As per Ravindra Rao, VP- Head Commodity Research at Kotak Securities, “Gold continues to trade within the $1780-1820/oz range seen for last few days amid lack of fresh cues and lower trade volumes due to year-end holidays. Support from weaker US dollar and persisting virus risks and China concerns are countered by sharp rise in US bond yields and weaker investor interest.”
As we reported earlier, in 2020, on MCX, August gold futures went up by 1% to a new high of Rs. 500,10 per 10 gram. September silver futures on MCX hiked by 6.6% to Rs. 61,130 per kg. In the previous session, the prices of gold had hiked by 1% or about Rs. 500. Whereas, in the previous session, the prices of silver had hiked by 6% or about Rs. 3400 per kg, which extended Monday’s gain of Rs. 1150.
Comparing it to the global market, the spot gold prices rose by 1.3% to $1,865.81 an ounce, which is the highest in about 9 years.
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