Gold prices in India on September 17, 2020 fell in line with global rates. On the MCX, gold for October delivery were dragged lower by over Rs. 400 or 0.86% to Rs. 51380 per 10 gm.
In the international markets gold prices fell from their 2 -week high after Fed resorted to maintain interest rates low for at least 3-years and there was a rise in the dollar index.
Nonetheless the losses remain capped as economic recovery from the pandemic remains a concern. Spot gold was down 0.3% to $1,954.42 per ounce by 0034 GMT, after hitting its highest since Sept. 2 at $1,973.16 on Wednesday.
The US said that it expects the economic recovery shall be faster as indicated from the fall in unemployment rate. Also rates shall be kept near zero levels until inflation is on track to moderately exceed" its 2% inflation target "for some time."
Meanwhile Bank of Japan's monetary policy stance should be watched out for. While bank of England may provide additional stimulus to help the battered economy.
Back in India, gold for 24 K and 22K gold quotes at Rs. 51580 and Rs. 50580 per 10 gm.