New Delhi: The price of spot gold slipped 1.2% to $1,776 an ounce in the Global markets on Monday, making it a 6% fall in November, the biggest monthly decline since November 2016 due to some optimism over the Covid-19 vaccine.

 In India, gold futures fell 0.9% to Rs 47680 per 10 gram while silver futures tumbled 1.5% to Rs 58,100 on commodity exchange MCX, when trading started at 5 pm as the exchange was closed for the morning session due to a public holiday.

 The recent fall makes gold cheaper by Rs 8500 compared to a peak of Rs 56,200, the yellow metal achieved in August. This month alone gold has fallen 6% or Rs 3000 per 10 gram.

“Gold prices have fallen by over Rs 8,000 from its peak in August and are likely to fall further due to optimism in the COVID-19 vaccine. We anticipate gold touch Rs 45,000 per 10 gram in December,” Kumar Jain, President-Mumbai, Indian Bullion Jewellers Association told ABP News.

Total global gold demand was down 18.9% year on year (YoY) and 12.2% quarter on quarter (QoQ) to 892.3 tons as countries worldwide battled the COVID-19 pandemic with surging gold prices adding to the muted sentiments.
According to HDFC Securities Senior Analyst (Commodities) Tapan Patel, Gold prices continued downside on Monday as optimism on the vaccine has boosted investor sentiment towards riskier assets.

Global jewellery demand was also down 28.9% YoY to 333 tons in the third quarter of 2020. However, a sequential revival from a historic low of 251.4 tons was witnessed in the second quarter of 2020. Global jewellery demand was up 32.4% QoQ led by India and China, which together constitute 55-60% of global demand. On the other hand, demand for bars and coins saw a significant jump, not just sequentially but also YoY. Global bars and coins demand was up 48.7% YoY and 43.9% QoQ in the third quarter of 2020.

In the short term, gold could be forming a base around $1,880 – 1840, while rallies are likely to be capped in the range of $1940 - $1975.

“On the domestic front, we advise starting accumulating the metal with every dip towards Rs.49, 500-48,500, which is a good range to buy with short term upsides being capped around Rs.52000 - 53,000. On the longer-term prices front, we continue to maintain our target of $2500 on the Comex and Rs.65000-67000 on the domestic front,” said Motilal Oswal in its Commodity Insight report for November.