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.
“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.