Gold Price Plunges Below Rs.47500 Per 10 Gm On Dollar Rebound

Gold prices in India eased in the futures market on the MCX mirroring trend in the international gold rates. On the MCX, at around 12:45 pm, gold futures were down 0.93 percent or Rs. 443 at Rs. 47,307 per 10gm. Silver also followed suit and was trading weak by 0.95 percent or Rs. 654 at Rs. 67,911 per kg.

Gold Price Plunges Below Rs.47500 Per 10 Gm On Dollar Rebound

In the international markets, spot gold price has declined on the back of strength in the US dollar. Also, silver saw a retreat in price as investors await passage of the large US stimulus to combat the economic fall-out due to the pandemic and the interest rate decision by the Bank of England, said a Reuters report. The dollar hovered near a 2-month high hit in the previous session.

Spot gold shed 0.6 percent to $1,822.01 per ounce. US gold futures fell 0.6 percent to $1,823.90. Spot silver edged lower by 1.3 percent to $26.51. Silver prices have come down after hitting a near eight-year high of $30.03 on Monday as the social media led rally waned.

"The gold prices saw a gap down opening and continued its negative trend due to a stronger US dollar. The yellow metal has breached key support levels and the short term bias seems negative," said Amit Sajeja, VP Research - Commodities & Currencies at Motilal Oswal. Sajeja holds the view that the greenback could surge to 92 level, putting further pressure on yellow metal prices.

According to Sajeja, gold may test Rs 47,200 per 10 grams level on the MCX and hence, investors can sell gold on any rise in prices.

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