New Delhi: Gold and silver prices witnessed continued downfall on Tuesday. Although Gold is still hovering around Rs 50,000 mark, it is lower by nearly Rs 6,000 from its record price.
Motilal Oswal Financial services Commodity Vice President Navneet Damani told Zeebiz.com that if people are speculating gold prices to further decline or go back to its previous rates, they are mistaken. Additionally, he also cautioned people not to tally or track the yellow metal’s movements on the lines of the stock market movements. It is expected that gold may not witness a huge rally or decline by Diwali. You can expect the price range of the yellow metal to move between Rs 50,000-Rs 52,000 per 10 gram range.
Gold may see a sudden rally
On August 7, 2020, gold prices saw its record peak by surging to Rs 56,254 per 10 grams. Silver too rose to Rs 76,008 per Kg. The prices of gold and Silver depend on a slew of factors. Hence, to speculate that gold prices will fall further and settle below Rs 50,000 may be wrong. With the gradual lifting of lockdown world over and the economic activities resuming, experts believe that gold prices may see a sudden rally.
Gold Prices on October 6, 2020
Though gold futures opened lower on MCX, it was trading higher in the afternoon trade. At 12.23pm, gold futures on the MCX for December delivery rose 0.08 percent to Rs 50,665 per 10 grams as against the previous close of Rs 50626 and opening price of Rs 50,468. Silver futures for December delivery traded 0.06 percent lower at Rs 61,904 per kg as against the previous close of Rs 61,941 per kg and opening price of Rs 61,790.
Gold prices fell by Rs 389 to Rs 51,192 per 10 gram in the national capital on Monday, in line with a weak global trend, HDFC Securities said. In the previous trade, the yellow metal had closed at Rs 51,581 per 10 gram. Silver prices also declined Rs 466 to Rs 61,902 per kilogram from Rs 62,368 per kilogram in the previous trade.
Though, in the international market, optimism on Trump`s health hit gold and other safe haven assets, spot gold fell 0.1% to $1,911 per ounce, after hitting a two-week peak on Monday, and U.S. gold futures were down 0.21%, a Reuters report added.