Gold price today extend losses after sharp fall, silver rates slump1 min read . Updated: 24 Sep 2021, 06:09 PM IST
- Gold rate today down about ₹1,000 per 10 gram from Wednesday's highs
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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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