Gold being a precious Metal and is one of the Traditional investments done by the people of India. Gold continued to see steady Investment demand all over the world during the COVID-19 crisis. Gold prices in India have continued to rise to a peak during the pandemic. Gold prices in India edged lower on Tuesday 11th August 2020.The Gold prices sank below $1900 an ounce on Tuesday, extending the precious metal’s slump into a second day after the Haven lost more than 5% in the week’s opening session. After setting a record above $2000 an ounce last week, Gold’s rally has come to an juddering halt as U.S. bond yields advanced, eroding the Haven’s appeal. The swift drop in gold prices followed modest outflows from gold-backed exchange-traded funds, and a 15-day run in overbought territory for the relative strength index.
Gold had been on a tear in 2020, and the reversal in the gold prices represents a challenge for the metal’s backers. The Haven has been favored as the corona virus pandemic pummeled the global economy, prompting central banks and governments to deploy massive stimulus.
The Gold and silver prices fell for the second day in a row, amid the dollar holding on to gains and Russia’s Announcement of a covid-19 Vaccine. Spot price for 24 carat Gold in India fell over 5% to Rs.52,440 per 10 grams while the price for 22 carats was Rs.48,091. The price of silver too declined was down 7% to fall below the Rs.70,000-level per Kg on Tuesday.
As Gold rate fell for third day in a row, Investors could have locked-in profits following a record-run. The current Gold rally has been supported by investors, who saw the yellow metal as a safe haven amid the uncertainty caused by the pandemic. This fall could also be due to Russia’s announcement of a possible Vaccine for Covid-19.
The US index rose after US President Donald Trump considered lowering taxes on capital gains. Usually, Gold tends to gain when interest rates are low and political and economic uncertainties are high. The Gold futures for September delivery on MCX were down 5% or Rs.2716 at Rs.52,528 per 10 grams, while the price of silver futures, also for September delivery was down 7% or Rs.5469 at Rs.69,925 per Kg.