The dollar index, which gauges the greenback’s strength against a basket of six currencies.
The October contract of gold on the Multi-Commodity Exchange was at Rs 49,365 per 10 gram. (Photo: Getty)
Gold price continued their downward trend on Thursday, tracking global trends as prices of the precious metal tumbled amid a strengthening US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, held firm near a more than eight-week peak against rival currencies amid signs of economic slowdown in Europe.
The October contract of gold on the Multi-Commodity Exchange was at Rs 49,365 per 10 gram, lower by Rs 143.00 or 0.29 per cent from its previous close.
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“Prices have been falling sharply in the last few sessions as the dollar held on to its recent rally while a lack of additional stimulus to aid the recovery of the Coronavirus-battered global economy further weighed on sentiments,” said a report by ICICI Securities.
It further said that gold prices are likely to remain under pressure for the short-term and fall towards an immediate support of Rs 49,000 per 10 gram.
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