Gold prices down 3% in last one week, analysts expect further decline

The downtrend in the global prices continued on Thursday, with the futures of the yellow metal on the Multi-Commodity Exchange moving southwards towards the 49,000-mark.

The October contract of gold on the MCX is currently trading at Rs 49,365 per 10 gram, lower by Rs 143.00 or 0.29 per cent from its previous close.

The recent fall in domestic gold prices is in line with the global trend, where prices of the precious metal fell amid a strengthening US dollar

"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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