Gold prices in India declined in Thursday's trade (August 13, 2020) owing to profit booking in the precious yellow metal as there was witnessed a surge in US yields, recovery in the US dollar and also there was announced a Covid 19 vaccine by Russia which improved risk-on sentiment.
On the MCX, gold futures for October delivery at around 3:15 pm traded lower by 0.31% or Rs. 163 at Rs. 52,091 per 10 gm. Silver on the contrary, traded higher by 0.5% or Rs. 326 at Rs. 67079 per kg.
In the previous day's trade, gold saw the worst daily decline in price since 2013 of 3.4%, plunging below $1900 per ounce and later gained 2% as Britain's slump in GDP by a record 20% for the second quarter renewed economy recovery concerns. "Prices of gold and silver were very much overstretched so a correction was overdue but nobody expected such sharp correction in a relatively short period," Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told a leading business daily.
Interestingly, while it took 9 trading sessions for gold to scale in price from $1900 to $2000, it was just in a matter of 1 day that it cracked from $2000 to $1890. Similar is the case with silver which jumped from $25 to $30 in 4 trading session, but retreated lower to $23.50 from $29 in just one trading day.
Last week, gold prices hit a new high of Rs. 56,191 per 10 grams while silver futures scaled to an all-time high of Rs. 77,949 per kg. With today's drag in gold prices, yellow metal is down Rs. 4100 or 7.5% from its record high price and silver around Rs. 10870 or% off from its peak.