Gold futures recovered its initial decline after the Reserve Bank of India (RBI) announced 25 basis point cut on cash reserve ratio (CRR) and kept repo and reverse repo unchanged.
For October delivery, gold on the Multi Commodity Exchange (MCX) declined 0.20% in early Monday trade at Rs 31,815, but, recovered later to Rs 31,887 per 10 grams later after RBI’s announcement of September monetary policy. The contract recorded a marginal 0.02% gain at this level.
Similarly, silver for December delivery fell a marginal 0.04% to trade at Rs 64,257 a kg in early morning trade.
The precious metals fell in the domestic market despite a marginal appreciation in gold and silver in the benchmark London market. In London, gold initially gained by over $5, but, later fell to record a gain of a marginal $0.44 to trade at $1770 an oz on profit booing. Silver also followed suit and remained quoted at $34.80 an oz.
