Indian markets saw a sharp decline in gold and silver prices that further tracked muted global rates. October fold futures fell 0.65 per cent to Rs 52596 per 10 gram while September silver futures dropped 1 per cent to Rs 70,345 per kg, as revealed on MCX. After hitting a record high of nearly Rs 56,000 the previous week, gold prices have since been volatile. In the previous session, gold had risen 1 per cent amid volatile trade while silver had surged about 6%. So far this week, gold is down over Rs 2,000 per 10 gram.
Today saw a flat observation of gold prices at $1,952 per ounce in the international markets. Following a wild ride, gold has dropped 4% as such this week. Following Russia’s first launched and approved COVID-19 vaccine on Tuesday, investors also booked profit.
The dollar fell three times in a row, as revealed in the third consecutive session as opposed to rivals, thereby supporting gold and making it cheaper for holders of other currencies.
On Thursday, data revealed that jobless claims in the US dropped below one million last week for the first time since the start of the COVID-19 pandemic. But at least 28 million people are still receiving unemployment checks, indicating a weak labour market.
On the US stimulus plan front, the stalemate continued. President Donald Trump said he was blocking Democrats’ effort to include funds for the US Postal Service and election infrastructure in a new coronavirus relief bill.
Bullion prices have already surged almost 30% this year.
The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.1% to 1,252.09 tonnes on Thursday.
In the meantime, billionaire Ray Dalio’s hedge fund Bridgewater Associates has raised its investment in gold-backed exchange-traded fund or gold ETFs by a third in the second quarter. Exchange-traded funds (ETFs) store gold on investors’ behalf.
Bridgewater purchased 1.4 million shares in the SPDR Gold Shares ETF, equivalent to around 130,000 ounces of gold, in the April-June quarter, a regulatory filing showed.
Gold ETFs have seen record inflows this year as investors rush for the safe-haven appeal of gold amid the coronavirus crisis upends markets and low returns on bonds.