Gold prices in India continue to fall for the fourth straight day. On the MCX, gold August contract edged lower by 0.34% or Rs. 163 to Rs. 47883 per 10 gm. Notably, it is the seventh consecutive month of gains for the precious yellow metal on the MCX. Last Wednesday i.e. on July 1, gold hit a new high of Rs. 48,982 per 10 gm tracking cues from international gains.
Silver too in line was trading lower by 0.43% or Rs. 212 at Rs. 48965 per kg.
In the international market gold prices largely stood steady on Friday as rising coronavirus cases offset the robust US jobs data and optimism around vaccine. Spot gold traded mostly unchanged at $1,775.35 per ounce
Back in India, gold prices have seen a splendid rally of 25% in the first half of CY 2020 amid Covid 19 blues as the global economic distress and geo-political spark drifted investors from risky assets to safe havens such as gold. Also, in the international market, gold soared in price to its highest in 8 years.
Prospect of gold price to move further upward from here and cross Rs. 50,000 per 10 gm
Experts opine as there is further development on virus vaccine, resilient equity markets and global economic data has been coming in better than expected, unless there is second wave of infection, economies close down again and spike in geo-political unrest gold is unlikely to see levels of Rs. 50000 per 10 gm in the short-run and largely consolidate for some more time.
"No, we don't expect it rally towards Rs 50,000/10 gram, instead we see a small reversal and some profit-booking may take place as risk appetite is picking up with nations easing the lockdown and governments and central banks providing stimulus to support economies," Rahul Gupta, Head of Research- Currency at Emkay Global Financial Services told a leading online business portal.