Gold prices fall by 1,000 per 10 gram in just two days.
Gold and silver prices fell for the second day in India today, as fears arose from a further escalation of tensions between the US and Iran. In the case of MCX, gold futures prices decreased by 1% to 39,725 per 10 grams, after dropping by almost 600 in the previous session. Silver prices also fell today, with MCX futures falling 1.4% to 46,713 per kg. In global markets, gold prices fell from their nearly seven-year highs after US President Donald Trump’s remarks eased fears of further US-Iran hostilities. Comex’s gold futures closed at $1,561 an ounce after rising above $1,600 for the first time in nearly seven years on Wednesday. Trump said that Iran’s missile strikes at bases in Iraq did not harm US troops and that Tehran seemed to be standing. Iran later claimed that the attacks had “concluded” for now, while Foreign Minister Mohammad Javad Zarif tweeted that the country “is not seeking an escalation or a war.”
Gold may see some profit booking as a softening of the rhetoric that the US and Iran have allayed fears about a major military conflict, SMC Global Securities said in a statement.” Gold can dip down to 39,800 while taking resistance near 40,300 while silver can test at 47,000 while taking resistance near 47,500,” the brokerage said. Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell by 1.05% to 886.81 tons on Wednesday, she added.
Gold prices soared to a record high of 41,293 per 10 grams in the previous session in India after Iran retaliated for a US drone strike that killed an Iranian military officer last week, raising fears of rising Middle East tensions. Next on the Gold Trader Watch: Release of U.S. employment data by the Labor Department on Friday. Gold has made a strong start to the year, driven by rising hostilities in the Middle East. Prices have seen new highs in India over the past week in the wake of a global rally and a rupee decline against the US dollar. India imports most of its gold requirements. Prices on domestic markets include 12.5% import duty and 3% GST. Gold prices rose by about 25% in domestic markets last year, lifted by a global rally in the midst of US-China trade tensions, bribing and easing the US Federal Reserve’s monetary policy.
