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Down Rs 7000 from record highs,Gold prices fall again ; Silver tumbled 1%.

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Gold and silver prices continued to be under pressure in Indian markets today. On MCX, gold futures fell 0.4% to 49,460 per 10 gram, extending last week’s sharp fall, while silver tumbled 1% to 58,473 per kg. Last week, gold prices in India had tumbled 2,000 per 10 gram in India while silver plunged 9,000 per kg. As compared to is August 7th highs of 56,200, gold is down about 7,000 per 10 gram.

In recent days, gold has been under pressure amid a resurgent US dollar, which is being seen as the preferred safe haven asset amid renewed risk aversion in global financial markets. Global risk sentiment has weakened as rising virus cases especially in Europe have rekindled worries about fresh lockdowns though counties have not yet resorted to large-scale lockdowns.

In global markets, gold prices were steady after last week’s battering. Spot gold was little changed at $1,860.19 per ounce as the US dollar rally took a pause. The dollar index was down 0.14% against rivals, after hitting a two-month high last week. A softer dollar makes bullion cheaper for holders of other currencies.

Gold traders moved to the sidelines ahead of Tuesday’s the first US presidential debate between President Donald Trump and Democratic opponent Joe Biden.

Asian stock markets were mostly higher today after data over the weekend showed profits at industrial companies in China grew for a fourth consecutive month in August.

Gold investors also looked for any signs of breakthrough in talks for further stimulus in the US. Over the weekend, US House Speaker Nancy Pelosi said a deal could be reached with the White House on a coronavirus relief package and that talks were continuing.

Despite the recent price drop, ETF investors remained on the sidelines. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.02% to 1,266.84 tones on Friday.

In India, the drop in gold pries triggered some uptick in retail demand last week, dealers said. (With Agency Inputs)

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RBI issues guidelines for SRO’s for payment system operators.

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The Reserve Bank on Thursday issued final guidelines, including the framework, to set up a self-regulatory organisation for payment system operators as part of its payment and settlement systems vision.

The Reserve Bank on Thursday issued final guidelines, including the framework, to set up a self-regulatory organisation for payment system operators as part of its payment and settlement systems vision. The framework will enable the central bank to recognize a self-regulatory organisation (SRO) for payment system operators (PSOs). The plan was announced in February 2020 monetary policy. “Interested groups/association of PSOs (banks as well as non-banks) seeking recognition to be an SRO may apply to the chief general manager, department of payment and settlement systems at the RBI,” the regulatory circular said.

An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of its members to help protect customers and promote ethical and professional standards.

An SRO can help frame rules for system security, pricing practices, customer protection measures, grievance redressal mechanisms, among others, and is expected to resolve the disputes among the members internally through mutually accepted processes to ensure that members operate in a disciplined environment and even accept its penal actions.

The central bank said the SRO shall be set up as a not-for-profit company under the Companies Act of 2013 and only regulated payment system entities such as banks and non-bank PSOs can be members of the SRO.

At least one-third of the members on the board of directors of the SRO shall be independent and not associated with member institutions.

The board shall frame a code of conduct for the members.

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