Today, the futures price of gold and silver has been recorded in the Indian markets. While gold and silver were flat in global markets, February gold futures on MCX fell by 0.25 percent to Rs 50,775 per 10 grams. This was the second decline in the last three days. Gold fell about 0.85 percent in the previous session after falling by Rs 1,200 per 10 grams on Wednesday. Gold rates are lower by Rs 6,000 per 10 grams, compared to August's high of Rs 56,200.
Price is so high in global markets
In global markets, gold fell 0.1 percent to USD 1,911.32 an ounce from a strong US dollar, but the precious metal is still at a weekly gain of 0.7 percent. Expectations of additional US fiscal stimulus from the Joe Biden administration in the US mitigated losses.
Among other precious metals, silver fell 0.2 percent to $ 27.05 an ounce, while platinum climbed 0.4 percent to $ 1,121.46, with palladium rising 0.2 percent to $ 2,424.45.
ETF flows reflect weak investor interest
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.4 percent to 1,182.11 tonnes on Thursday. Gold ETFs are based on the prices of gold and its price also decreases with the subsequent fluctuations in its price. The flow of ETFs reflects weak investor interest in gold. A strong dollar makes gold more expensive for holders of other currencies.
Gold increased by 25 percent last year, silver rose by 50 percent
Fiscal measures by central banks and governments around the world to reduce the effects of the coronavirus had raised gold prices by more than 25 percent last year while silver rose nearly 50 percent. Gold is seen as a hedge against inflation and currency depreciation. Gold in India is well below its August high, that is, Rs 56,200 per 10 grams.