Gold Prices Fall In India In Tandem With Decline In Global Rates; Rs.65-68K Price Seen By 2021 End

Gold prices in India on September 11, 2020 fell in line with international rates which gained in the previous session. On the MCX, gold prices quoted at Rs. 51320, down Rs. 454 or 0.88%.

In the international market, gold prices slipped from 1-week peak as dollar rebounded Spot gold was down 0.3% at $1,947.41 per ounce by 0058 GMT, after hitting its best level since Sept. 2 at $1,965.94 on Thursday. Still economic recovery woes continue to keep the metal set for weekly gain.

The US Senate in the previous session restricted around $300 billion as the Democrats seeking far more aid pushed it back. Also, unemployment claims continue to be high suggested that growth in labour market continues to stall.

Now investors are eyeing the US CPI as well as British GDP data.

Gold Price Outlook

"Gold prices would continue to climb up amidst the heightened liquidity, possible raise of inflation due to that and bloating fiscal deficits of governments putting additional stress on their currencies including US dollar," said Navneet Damani, vice president, Motilal Oswal Financial Services. Damani has a target of $2,450 on gold by the end of 2021, and in rupee terms between ₹65,000 and ₹68,000 per 10 grams.

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