Domestic gold and silver rates buckled with pressure during a mild respite in the last session. MCX indicated futures in gold having declined 0.27% at Rs 49,771 per 10 gram in its fourth subsequent fall in five days. Silver futures on MCX were down 0.5% to Rs 59329 per kg. Previously, gold climbed 0.64% or Rs 300 while silver added 1.8% or Rs 1060 per kg. Gold and silver prices have dropped heavily this week domestically. Current week gold is down nearly Rs 2,000 per 10 gram whereas silver has slumped Rs 9,000 per kg.

Internationally, gold fell by a firmer US dollar performance, although the losses were capped between renewed hopes for additional US stimulus measures. Spot gold dropped 0.2% to $1,864.47 per ounce, crossing losses over 4% this week. Between additional valuable metals, silver dropped 1.1% to $22.95 per ounce, platinum declined 0.3%, to $846.72 and palladium stayed flat at $2,226.44. The dollar index is up 1.5% this week, recorded best since April. The analysis shows gold has been stumbling this week as the US dollar is regarded as the desirable safe haven asset following renewed risk aversion in international markets. 

Kotal Securities discussed another factor being postponement in the US stimulus package, political wrangling over the appointment of Supreme Court Justice in the US, uneven economic data from major economies, brewing US-China tensions and Brexit confusion. Gold also fell as ETF investors decided to stay on the sidelines.

“Gold has broken below the key $1900/oz level and may remain under pressure unless we see a substantial correction in the US dollar,” Kotak Securities said. Asian stock markets mostly rose today after a higher outcome on Wall Street.