Gold and silver which are often considered widely as safe heavens or assets against US dollar weakness and inflationary pressures, prices plunged in India on Friday in tandem with a fall in global rates. The third tranche of sovereign gold bonds in India will open for subscription on Monday and till June 12.
On MCX, gold futures slumped over 2% or about ₹1,000 to ₹45,732 per gram. Silver futures on MCX crashed 3% or about ₹1,500 to about ₹47,337 per kg. Gold discounts which are offered by dealers in India this week widened to the highest in about two months. Discounts on gold in India rose up to $32 an ounce over official prices.
Better US job numbers (non-farm payrolls data), improved US-China tensions and oil surging put further signs that the global economy has started to recover faster than anticipated from the coronavirus pandemic, putting pressure on perceived safe haven assets like gold and bonds.