On Wednesday gold and silver prices continued to fall for a third straight day tracking global markets. On Multi Commodity Exchange (MCX), gold futures fell 0.21% to Rs 48,485 per ten gram and silver futures were down to Rs 59,460 per kg.
Gold futures, in the previous session, had slumped Rs 900 as they extending Tuesday’s Rs 750 fall. Silver had slumped Rs 800 per kg in the previous session, following Tuesday’s fall of Rs 1,600. Globally, gold languished near a four-month low on Wednesday as appetite for riskier assets remained buoyed by the formal start of US president-elect Joe Biden’s transition to the White House and hopes a Covid-19 vaccine would be ready soon.
Spot gold eased 0.2% to $1,803.51 per ounce by 0327 GMT. On Tuesday, it had hit its lowest level since July 17 at $1,800.01. US gold futures dipped 0.1% to $1,803.20.
“We are moving into a new phase in gold as vaccine developments are changing the regime of pandemic-caused disruptions and headwinds to growth that gold markets were pricing in,” Lachlan Shaw, National Australia Bank’s head of commodity research, was quoted as saying by Reuters. “If US real long yields range trade around current levels, it’s difficult to see gold breaking out and then sustaining a strong rally towards $1,900 and $2,000,” Shaw said.
US President Donald Trump gave the go-ahead for Biden to start receiving daily intelligence briefings, a sign he has all but accepted the election result after Pennsylvania certified the Democrat’s victory in the battleground state. The formal start of Biden’s transition to the White House and positive developments around a possible Covid-19 vaccine helped world shares scale a record peak after an overnight surge saw the Dow crack 30,000 for the first time.
ED&F Man Capital Markets analyst Edward Meir said, according to Reuters, a break below $1,800 could see more selling of gold and this move away from gold and towards risk assets could continue. Meir added the yellow metal should find some support near $1,750-$1,770. Investors are now waiting for the release of minutes from the United States Federal Reserve’s last meeting due at 1900 GMT.