Gold prices continue to decline on risk sentiment; Prices may increase today

In domestic markets, gold continues to fall for the second day in a row on Thursday. In the Mumbai retail market, prices were lowered by Rs. 498, while on the MCX also on the futures market, prices decreased by Rs. 148 or 0.30 percent to 49112, while silver gained marginally at Rs. 63575 per kg.

The drop is being seen in the metal’s price for now, as stock market cheer and optimism around the Covid 19 vaccine are luring investors toward riskier assets and reducing gold’s appeal as a safe haven.

Other reasons that drag the price of gold are the strength of the dollar, which is increasing for the fourth consecutive session and that there is no progress in the US stimulus.

In today’s trading (Dec 11, 2020), gold prices are likely to see a surge as a dispute arises between Australia and China. This is after Beijing said it would temporarily impose anti-subsidy tariffs on some Australian wine imports from December 11.