Gold prices in India fell today, extending sharp losses of the previous session. On MCX, August gold futures fell 0.2 per cent to Rs 46,470 per 10 gram after tumbling Rs 556 in the previous session. Tracking gold, silver also edged lower. On MCX, July silver futures fell 0.51 per cent to Rs 48,830 per kg. Sliver had declined about Rs 1,500 in the previous session. An appreciation of rupee against US dollar also put pressure on domestic gold prices. Gold prices in India include 12.5 per cent import duty and 3 per cent GST. In global markets, gold prices dipped today as equity markets continued to rally on optimism over reopening of economies. Spot gold was down 0.2 per cent at $1,722.93 per ounce. Among other precious metals, platinum inched up 0.1 per cent to $839.52, while silver fell 0.6 per cent to $17.98.
Gold is often seen as an alternative investment during times of political and financial uncertainty. The US dollar index, which measures the greenback against six other currencies, was down 0.17 per cent to a two-month low of 97.49. A softer dollar makes gold cheaper for holders of other currencies.
The rally in equity has taken some shine away from gold in past few sessions as businesses continue to reopen around the world following corona virus shutdown. Hopes of additional stimulus have also pushed global stocks to a three-month high. In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday. Central banks and governments around the world have unleashed huge quantities of stimulus to cushion their economies from the coronavirus pandemic.