OPEN APP
Home / Markets / Commodities /  Gold and silver prices fall for second day in a row

Gold and silver prices edged lower in Indian markets today. On MCX, gold futures edged 0.06% lower to 50,050 per 10 gram. The yellow metal declined for the third time in the last four days. Silver fell 0.08% to 66,820 per kg. Though gold has recovered from lows of below 48,000, it remains significantly lower than the August highs of 56,200. Similarly, silver had also almost touched 80,000 per kg in the same month.

On the contrary, gold prices jumped higher in international markets as grim US consumer and housing data bolstered hopes for further stimulus to support an economic recovery from the pandemic-induced slump. Spot gold rose 0.2% to $1,863.83 per ounce by 0027 GMT, while US gold futures fell 0.1% to $1,868.10.

Gold regained its strength as virus situation continued to worsen while central banks maintained dovish stance and governments continued with measures to support their economies. A new coronavirus strain in the UK has caused several countries around the world to shut their borders to Britain and drugmakers to scramble to test their Covid-19 vaccines against it. Weekly Covid-19 infections rose by the highest since the pandemic began, with the United States reporting the most number of cases for any single country, the World Health Organization said on Tuesday.

Silver rose 1% to $25.38 an ounce.

The upside in gold however continued to be limited by progress on vaccine front and lack of ETF flows, says Kotak Securities in a report. "Open interest for MCX Gold February contract fell from 11492 contracts to 11371 contracts, a decline of 1.1%. Drop in OI and an increase in price indicates short covering in the market. The sharp price rally and marginal change in OI however indicates lack of fresh participation."

The brokerage further says that the yellow metal has rallied too sharply and we may see choppy trade due to mixed factors however general trend may be on the upside. It recommend to buy gold on dips.

"The possible trading range for the week is $1840-1920/oz. MCX Gold is expected to trade in a range of Rs.49200-51100/10 grams and buy on dips is recommended.

SPDR Gold Trust the world's largest gold-backed exchange-traded fund, said its holdings fell 0.20% to 1,167.53 tonnes on Tuesday from 1,169.86 tonnes on Monday.

On MCX, silver outperformed and rallied sharply last week as it benefitted from concurrent gains in gold and industrial metals on back of weaker US dollar.

"With general positive trend in gold and industrial metals, silver may also trade with a positive bias but we may see choppiness. MCX Silver may trade in a range of 64850-72000 and one should wait for lower levels to create fresh long positions," says Kotak Securities. (With Agency Inputs)

Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout