Gold prices witnessed a decline on Monday as compared to last week. On the Multi-Commodity Exchange (MCX), gold futures plunged 0.15 per cent, standing at Rs 51,637 per 10 gram.
Globally, gold prices moved up due to a weaker US dollar and rise in COVID-19 infections. The price of spot gold increased 0.3 per cent to reach $1,954.65 per ounce.
In the previous session in India, the price of the yellow metal rose 0.52 per cent. Gold prices last month had crossed Rs 56,000, but have fluctuated in recent weeks. Last week, gold futures contract settled at Rs 51,715 per 10 gram, gaining 2.05 per cent.
The MCX Gold October is hovering around its 21-Daily Moving Average of Rs 51,400 level.
Gold prices are expected to rise in the future as the Federal Reserve has hinted at lower interest rates until 2023. Last week, the dollar index went down 0.12 per cent against its rivals. As a result of this, gold became more attractive for buyers holding other currencies.
According to livemint, investment in gold has picked up as holdings in SPDR Gold Trust moved up 1.03 per cent to 1,259.84 tonnes on Friday. SPDR Gold Trust is the world’s largest gold-backed exchange-traded fund.
As the coronavirus cases continue to rise in many parts of the world, the demand for gold is expected to increase as it considered a safe investment.
In India, gold demand is supposed to grow in light of the upcoming festive season. It is also said that jewellers could offer discounts to increase their sales.
On the other hand, silver futures in September have also fallen 0.13 per cent to Rs 67, 790 per kg. Like gold, silver also settled on a positive note last week. Last week, the silver futures contract stood at Rs 67,877 per one kilogram, going up 0.91 per cent.