Gold Price Today Falls Sharply For The 4th Consecutive Day, Plunge 2,500 Per 10 Grams His Week

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In the international market, gold is trading around $1,850 per ounce mark. Commodity experts say that the major reason behind the drop in prices has been the rise in the US dollar since the Dollar and gold have an inverse connection. Gold prices broke down as the dollar continued to trade higher despite downcast US yields. The dollar continued to benefit from a safe-haven bid, which has not been the case for gold prices.

These Gold prices broke down on Wednesday and are poised to test target support is the August lows at 1,862  extending losses to the fourth day. 

On MCX, October gold futures were down 0.45% to ₹49,293 per 10 gram while silver futures lost 3% to ₹56,710 per kg. In four days, gold has lost about ₹2,500 per 10 gram so far. In the previous session, gold had slumped 1.9% or ₹950 while silver had crashed 4.5% or ₹2,700 per kg.

The international gold prices continued their downward movement today, falling to a more than two-month low. Investors remained cautious ahead of US jobless claims data due later in the day while a robust dollar weighed on the precious metal.

Among other precious metals, silver fell 2.8% to a near a two-month low of $22.23 per ounce. Unprecedented global stimulus, negative real rates and a weakening dollar pushed gold to a record high above $2,075 an ounce in August earlier.

The US dollar has edged up amid increasing concerns about the health of European economies amid rising virus cases, mixed economic data and Brexit uncertainty,” Kotak Securities said in a note.

“The US dollar has edged update also as Fed continues to emphasize the need for additional fiscal stimulus which indicates that monetary measures are not being considered,” the brokerage added.

Gold ETF investors have also moved to the sidelines amid the sharp fall in prices. “While firmness in the US dollar has pressurized gold prices, increasing coronavirus spread and global economic concerns have increased gold’s safe-haven appeal. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.87% to 1,267.14 tones on Wednesday.

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