Gold prices in India fell again after slumping ₹600 per 10 gram

Gold prices in India fell today, extending sharp losses of the previous session. On MCX, August gold futures fell 0.20% to ₹46,470 per 10 gram after tumbling ₹556 in the previous session. Tracking gold, silver also edged lower. On MCX, July silver futures fell 0.51% to ₹48,830 per kg. Silver had declined about ₹1,500 in the previous session. An appreciation of rupee against US dollar also put pressure on domestic gold prices. Gold prices in India include 12.5% import duty and 3% GST.

In global markets, gold prices dipped today as equity markets continued to rally on optimism over reopening of economies. Spot gold was down 0.2% at $1,722.93 per ounce. Among other precious metals, platinum inched up 0.1% to $839.52, while silver fell 0.6% to $17.98. However, protests in the US and a soft dollar capped the downside for gold.

"Worldwide hazard hunger appears to be energetic in the midst of hopefulness over reviving of economies, indications of adjustment in worldwide industrial facility movement and any desires for more boost from significant economies regardless of waiting concerns over US-China and declining social agitation in US," Kotak Securities



said in a note. 

Gold is often seen as an alternative investment during times of political and financial uncertainty. The US dollar index, which measures the greenback against six other currencies, was down 0.17% to a two-month low of 97.49. A softer dollar makes gold cheaper for holders of other currencies.

The rally in equity has taken some shine away from gold in past few sessions as businesses continue to reopen around the world following coronavirus shutdown. Hopes of additional stimulus have also pushed global stocks to a three-month high. In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday.

National banks and governments around the globe have released gigantic amounts of improvement to pad their economies from the coronavirus pandemic.

Still then, investors continued to put in money into gold ETFs. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.1%to 1,129.28 tonnes on Tuesday.

After a long gap, spot gold markets in Delhi reopened on Monday.