Gold Price Decline Even As Corona Led Curbs; Softer Dollar Raises Its Appeal

Gold prices in India decline even as rates inch higher globally. On the MCX, gold futures for October delivery declined by 0.16% or Rs. 81 to Rs. 51634 per 10gm. While silver also shed by a same quantum to trade at Rs. 67679 per kg.

In the global markets, gold prices continued to thrive higher on weaker dollar and as coronavirus led curbs dented swift economic recovery hopes, raising appeal for the bullion. Spot gold rose 0.3% to $1,954.65 per ounce by 0118 GMT.

U.S. gold futures inched 0.1% lower to $1,959.90.

On Friday, the US Fed elaborated on its earlier decision of higher inflation tolerance level. Further more cues on the Fed's monetary decision are being awaited as some of the chiefs including Fed Chair Jerome Powell will speak this week.

Meanwhile, in the wake of rising coronavirus cases, Britain and in some of the European cities there are being imposed fresh restrictions to stop the spread of the deadly virus.

Back in India, with coronavirus threat continuing unabated and no resurgence in physical demad, gold dealers have been pinning their hopes on the upcoming festive season that begins with Navratra. Also, in order to lure customers they continue to offer discounts. Gold of 22 and 24K quote at Rs. 50490 and Rs. 51490 per 10 gm respectively.

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