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Gold prices were weak today in Indian markets despite a rebound in global markets. On MCX, gold futures were down 0.12% to 45,999 per 10 gram in evening trade after falling to 45,916 at day's low. Silver futures were down 0.74% to 60340 per kg. In the previous session gold had slumped 600 per 10 gram and in fact from Wednesday's high, the precious metal is down about 1,000.

In global markets, gold rates were firm today a 1% drop in the previous session. Concerns over the fate of China's Evergrande helped bullion's safe-haven status though a stronger US dollar capped gains. Spot gold rose 0.5% to $1,750.90 per ounce. On Thursday, gold fell to one-month low after Fed signaled this week that it could announce tapering soon. 

“The $1750 barrier has been significant in the past, and I believe that if we break below it, we will have a great “lower low". If we do break down there, I believe the market will look to the $1680 level, which has traditionally provided a lot of support, and I believe we would need to see a break down below there on the daily chart to truly fall apart at that point. The market then turns its attention to the $1500 level," said Kshitij Purohit of CapitalVia Investment Advisor. 

Support for MCX gold is seen at 45800 - 45500, while resistance at 46470 - 46700.

Higher interest rates increase the opportunity cost of holding bullion, which pays no interest. Gold also competes with the dollar as a safe store of value during financial or political uncertainties.

Meanwhile, the debt crisis at China Evergrande Group kept traders on edge,

Among other precious metals, silver climbed 0.3% to $22.54. Gold traders will be watching Federal Reserve Chairman Powell opening remarks at a virtual Fed event later today. 

Sentiments in global markets were mixed with a bit of caution awaiting Fed Chair Jerome Powell’s statements later today, said domestic brokerage Geojitin a note. Meanwhile, China's Evergrande has left global investors guessing over whether it will make a key interest payment, adding to fears that Beijing will let overseas bondholders swallow large losses as a liquidity crisis deepens at the world’s most indebted property company. (With agency inputs)

 

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