Persisting struggle in domestic gold and silver rates was evident as MCX data depicted gold futures drop 0.4% to Rs49,460 per 10 gram, following previous week’s drop and silver plunge 1% to Rs58,473 per kg.

 The previous week saw gold tumble Rs 2000 per 10gram domestically, with silver plunging Rs 9000 kilogram-wise. Since August 7th’s record with Rs 56200, gold lessened nearly Rs 6500 per 10 gram. Gold faces pressure with a resurgent US dollar, still deemed desirable as a safe haven asset while international markets avert risks. Global risk sentiment has become fragile with impending COVID-19 cases particularly in Europe with worries about new lockdowns despite counties still to resort to large-scale ones. Internationally, gold rates became consistent following the previous week’s statistics. Spot gold was little altered at $1,860.19 per ounce as the US dollar rally took a pause. The dollar index decreased 0.14% against rivals, after hitting a two-month high last week.

 Other metals performed as follows, silver gained 0.3% to $22.93 per ounce, platinum increased 0.4% to $850.74 and palladium benefitted 0.1% to $2,217.87.

Gold traders shifted to the sidelines prior to Tuesday’s primary US presidential debate between President Donald Trump and Democratic opponent Joe Biden. Asian stock markets were mostly higher today after data over the weekend indicated gains at industrial companies in China grew for a fourth consecutive month in August.

Gold investors kept an eye out for any breakthrough following discussions for further stimulus in the US. Over the weekend, US House Speaker Nancy Pelosi said a deal could be reached with the White House on a coronavirus relief package and that talks were continuing.

 ETF investors stayed on the sidelines even with prices declining. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped 0.02% to 1,266.84 tonnes on Friday.

 Speculators lowered their bullish positions in COMEX gold and silver contracts in the week to September 22, the US Commodity Futures Trading Commission (CFTC) said on Friday.