Gold prices in India were weak for the third consecutive day. Despite positive global cues on MCX, gold futures fell 0.02 percent to Rs 49,131 per 10 grams. Gold had fallen 0.5 percent in the previous session, while silver had fallen 0.9 percent. Today, silver futures on MCX rose 0.4 percent to Rs 66,885 per kg. According to Geojit Financial, gold prices continue to decline due to expectations of larger US fiscal measures.
Price is so high in global markets
In global markets, spot gold today rose 0.3 percent to $ 1,858.57 an ounce, after falling 0.9 percent in the previous session. Among other precious metals, silver rose 0.9 percent to $ 25.61 an ounce, while platinum rose 0.6 percent to $ 1,105.06.
Price may be affected by these factors this week
This week, gold traders will be eyeing the decision of the Monetary Policy Committee of the US Federal Reserve and the announcement made by Chairman Jerome Powell on Wednesday. In addition, US fourth-quarter GDP, preliminary and jobless claims data will be released on Thursday.
Meanwhile, demand for physical gold in Asia rose last week as the Chinese New Year has encouraged buyers in China and Singapore. Gold attracts 12.5 percent import duty and three percent GST on gold in India. Gold rates in India are now around Rs 7,000 below their August highs and dealers expect prices to improve and economic recovery will boost demand in India.
ETF flows reflect weak investor interest
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.7 percent to 1,173.25 tonnes on Friday. 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.