Gold prices at the local jeweller in India fell after prices of the precious metal in the global markets dropped. Indian prices move in tandem with international prices, which have been on a decline since the beginning of the week.
Gold for 22 karats at the local jeweller in Mumbai were around the Rs 4,840 per 10 grams, while 24 karats was around the 4940 per gram mark.
According to Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services, gold extended losses and fell to its lowest level since mid-August in yesterday's session as the dollar advanced, with investors awaiting further response from major central banks as economic uncertainty looms.
Meanwhile, US Fed officials and Governor J. Powell shared the same view that monetary policy will need to remain accommodative for quite some time in order to support the economy.
U.S. business activity cooled, with gains at factories offset by a retreat at services, on other hand EU business activity took a halt amidst the rise in COVID-19 cases. Investors now await US weekly jobless claims data, if it is recorded higher than expectations it could support precious metal prices on lower levels. SPDR holdings, fell 0.87% to 1,267.14 tonnes on Wednesday. Broader trend on COMEX could be in the range of $1825- 1890 and on domestic front prices could hover in the range of Rs 49,000-49,880," Mr. Damani stated.