Gold futures fell by 1% on Thursday and Silver by 10%, biggest sell-off seen in silver since May. While the US dollar hit the eight-month highs against Rupee and all major currencies of the world.
It seems gold has lost its safe haven appeal as investors are shifting their investments from gold to dollar after Fed announced on Wednesday that it will buy $400 billion long-term debts and sell short-term debts.
Due to the fall in rupee, the physical buying of gold also waned as the landed cost of gold is quoted in dollars.
At 11:05 am, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) opened at Rs 27,998 per 10 grams and then fell further, it was trading in the range of Rs 27,812 – Rs 28,819 per 10 grams down by 0.36%.
And, gold for far month April delivery opened at Rs 28,778 per 10 grams and was trading in the range of Rs 28,714 – Rs 28,767 per 10 grams down by 0.62%.
Silver also fell by 2% in morning trade.
The most actively traded silver contract, for December delivery opened at Rs 61,400 per kg and was trading in the range of Rs 60,665 – Rs 60,673 per kg same time.