Gold prices fell sharply today in Indian markets, continuing their trend of recent weakness. On MCX, April gold futures fell sharply hitting 1.4% or about ₹554 to ₹39,169 per 10 gram, their seventh day of decline in eight. Silver, escalated an edged higher on MCX rising 0.21% to ₹33,978 per kg.
Gold has seen a sharp fall in Indian markets since hitting a record high of about ₹45,000 earlier this month, tracking a similarly steep decline in global rates.
In the global markets however gold prices dropped to 1.4% to $1,465.34 an ounce, also extending losses to the seventh time in eight sessions. So far this year, gold prices have gone down over 3%, while global stocks have plunged almost 30% and crude oil collapsed by 60%. Among other precious metals, silver was little changed while platinum fell 2.4%.
The economic impact of COVID19 is still unpredictable and despite the price correction, consumer demand for jewellery might not pick up any time soon, says Abhishek Bansal, chairman and managing director at Abans Group.
Gold prices on Wednesday rose by Rs 311 to Rs 40,241 per 10 gram in the national capital amid rupee depreciation and higher buying, according to HDFC Securities. Silver prices, however, fell by Rs 468 to Rs 35,948 per kg against the previous close of Rs 36,416 per kg.