Gold and silver prices today continued to drift lower in Indian markets. On MCX, October gold futures were down 0.3% to ₹51865 per 10 gram, extending losses to the fourth day. In four days, gold prices have tumbled around ₹1,700 per 10 gram. September silver futures on MCX fell nearly 1% to ₹66,426 per kg. In the previous session, gold had dropped 0.3% while September silver futures declined 1%. From August 7th highs of about ₹56,200, gold is down more than ₹4,300 per 10 gram. In global markets, gold prices moved lower today amid a steady US dollar. Investors also waited Federal Reserve Chairman Jerome Powell's speech at Jackson Hole later this week for more clues on the direction of US monetary policy. Spot gold was down 0.3% to $1,933.37 per ounce while US gold futures fell 0.4% to $1,910.10. The dollar index held steady at 93.207 against a basket of major currencies after climbing to a more than one-week high in the previous session. Among other precious metals, silver dropped 0.6% to $26.54 per ounce while platinum slipped 0.5% to $913.78. In the US, the Food & Drug Administration has approved the use of blood plasma from patients who have recovered from COVID-19 as a treatment for the disease. The stalemate over US stimulus package continued with top Democrats and Republicans blaming each other for stalled talks. Meanwhile, on Saturday, the House of Representatives in a special session approved $25 billion in new funds for the U.S. Postal Service. Back in India, physical gold dealers last week offered the highest discounts in more than a month and a half, even as more bullion flowed in from abroad, Reuters reported. Last week, the Indian government launched an online system for registration and renewal of licence of gold assaying and hallmarking centres. Currently, gold hallmarking is voluntary in nature. However, it will be made mandatory from June 2021. Gold sold by jewellers will need to have 'hallmark' quality certification. Gold may continue to witness choppy trade unless there are fresh triggers but buying interest may emerge at lower levels, Kotak Securities said in a note. Weaker consumer demand in India and China, as is evident from discounts in physical market, is also weighing on gold price, the brokerage added. Many analysts still maintain a bullish view on gold on expectations of more stimulus amid uncertain global economic recovery.
