On Tuesday, near-month August gold futures fell by over Rs 200 to a low of Rs 30,452 per 10 grams on the MCX India. Silver futures for delivery in near-month July fell by Rs 230 to a low of Rs 39,415 per kilogram.
Amid intensifying global trade war tensions, gold prices are on a downtrend as the precious metal is finding it hard to sell in the international market. Commodity analysts said that demand for investment in gold did not pick up this month as the US continued to threaten world economies by slapping more tariffs.
On Tuesday, near-month August gold futures fell by over Rs 200 to a low of Rs 30,452 per 10 grams on the Multi Commodity Exchange of India. Silver futures for delivery in near-month July fell by Rs 230 to a low of Rs 39,415 per kilogram. Spot gold prices in Ahmedabad were down at Rs 30,462 per 10 gms, while spot prices for silver were up at Rs 39,604 per kg, MCX data showed.
Analysts expect gold and silver prices to stay slippery during the rest of Tuesday’s trade session. “MCX gold August futures yesterday ended with marginal gains of approximately 45 points but silver witnessed a fall of more than 150 points, although domestic currency plunged by nearly 29 paise. Comex Gold hovered near last week’s low as investors flocked to US Treasuries rather than bullion, amid concerns over a global trade war to increase after a report said the United States plans to bar Chinese companies from investing in its technology firms,” said Jigar Trivedi, Fundamental Research Analyst — Commodities, Anand Rathi Group.
“The investment demand has not picked up in entire June. With investors betting more for September interest rate hike, there is no buyer for yellow metal in the international market. Hence, today we expect MCX gold to stay flat to negative in a day session,” Jigar Trivedi told FE Online. He said that both dollar and gold is likely to be volatile in the second half as US will release consumer confidence for May later.
Gold futures for delivery in far-month October fell almost Rs 216 per 10 grams to a low of Rs 30,740 on the MCX India. Similarly, silver futures for delivery in far-month September plunged by Rs 236 to a level of Rs 40,050 per kg.