Gold Prices Fall For Third Day To Touch Rs 46,030 Per 10 Gram, Silver Down At Rs 46,030 Per 10 Kg

Even as the pressure on bullion remains, the outlook for gold is still positive, believe experts, because the metal is seen as a safe-haven asset in times of political and economic upheaval.

Representational Picture (AFP)

New Delhi: Gold prices in India remained weak for a third day on Wednesday in line with the global rates as several economies resumed activities taking away the shine from the metal’s safe-haven appeal. On the Multi Commodity Exchange (MCX), June gold futures were down 0.63 per cent to Rs 46,030 per 10 gram, and silver futures also slipped 0.5 per cent to Rs 47,540 per kg, according to a Hindustan Times report. In global markets, gold fell to a near two-week low of $1,710.01 per ounce. Global rates have an impact on gold prices besides rupee-dollar exchange rate, import duty and GST rates can also weigh on the bullion prices. Globally, the precious metal was trading near a two-week low even as escalating US-China tension over Beijing’s proposed security law for Hong Kong covered the downside of gold. Spot gold eased 0.1 per cent to $1,710.01 per ounce by 0301 GMT, trading near last session’s low of $1707.10, when prices dropped as much as 1.3 per cent. US gold futures were also down 0.1 per cent to $1,703.20. Even as the pressure on bullion remains, the outlook for gold is still positive, believe experts. The gold is considered as a safe-haven asset in times of political and economic upheaval. Earlier this month gold prices had hit a record high of about ₹48,000 per 10 gram but since then prices have remained volatile in sync with the decline in global rates. With more countries taking measures to open the economy post lockdown, the risk sentiment has become stronger putting pressure on gold prices. Experts have opined that the geopolitical tension including the US-China trade war and Iran-Venezuela oil trade in the middle of US sanctions may push the prices. However, as global economies kick start their economy and surge in equities may offset the gains in gold prices. Traders will keep a close watch on the upcoming US Federal Reserve Chairman Jerome Powell comments on Friday. US jobless claims data for ended May 23 will be also be revealed on Thursday.