Gold Witnesses Pullback In Line With Global Rates As Dollar Strengthens

Gold prices in India on September 9, 2020 declined by 0.39% or Rs. 198 to Rs. 51155 per 10 gm. Silver also slumped in line by 0.75% or Rs. 515 to Rs. 67979 per kg.

In the previous session after early fall to below Rs. 51000 on the MCX, gold once again ground and held above Rs. 51000 on likely rupee depreciation on rising India-China border tensions and no major cues globally.

In the international markets, as dollar gained amid sell-off in equities once again, gold lost. But the losses will remain curbed as economic contraction remains an issue.
US President Donald Trump raised the prospect of "decoupling" the US economy from China and claimed that the US was registering "the fastest recovery in US history".

Outlook for gold

Navneet Damani, Vice President, Motilal Oswal, said, "Gold remained steady as the dollar strengthened against its major crosses and volatility for the yellow metal remained low due to US holiday yesterday. In the next couple of sessions volatility for gold could remain low ahead of the important ECB policy statement that is scheduled for release later this Thursday. For today, we expect gold on MCX to quote in the range of Rs 50,450 and Rs 51,300. On COMEX the expected range is $1,900 and $1,950."

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