Gold prices on the MCX in the futures market fell on gains in the equity market of a huge close to 1000 points on the Sensex. Similarly, silver prices continued to crash with prices tumbling by a huge 1200, taking silver prices to Rs. 71100 per kg.
Nonetheless, on dollar index which in yesterday's trade (May 21, 2021) trade slumped to below 90 and lingering fears on inflation, gold is on course of its third weekly gain. But, the dollar index as seen on 4:59 EDT quoted at above 90. Weaker dollar at a record low boosts the safe haven appeal of gold, wherein dollar loses it safe haven appeal to gold.
In the international gold market, gold was priced at $1872 per ounce. Also, on healthy global economic recovery pace, gold also increased appeal for risky bets such as equities etc., which also weighed on gold prices on a daily basis.
Promising global scenarios:
In the US latest jobless claim data has come in positive.
Also the US retail sale data has come in strong