Weak global cues impacted sentiments of Gold, whereby gold prices dropped by nearly 1 percent on Tuesday.
On the Multi Commodity Exchange (MCX), Gold for December Futures delivery was down Rs 49,050 on Tuesday, decreasing about 1 percent over Monday's closing. The weak sentiments were mainly on account of the expectation of a covid vaccine and a recovery in economic activities across the globe. Spot gold in India is likely to drop when markets open later. Spot gold in the international market declined as much as 0.1m percent to USD 1,834 per ounce after falling as much as 2.2 pc on Monday.
Most analysts hope gold to continue to weaken as economic recovery and vaccine optimism ease worries over Covid-19 infections. Physical demand for gold has also been weak, though gold exchange-traded funds have seen robust buying. It's likely that gold would continue to fall, though a large scale fall would be a buying opportunity. At the moment all asset classes are looking up.
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