Gold price today falls, a day after big jump, silver rates drop2 min read . Updated: 15 Sep 2021, 06:06 PM IST
- MCX gold price had surged in the previous session amid a jump in global rates
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Gold prices in India fell today after a sharp jump in the previous session while silver rates also declined. On MCX, gold fell 0.35% to ₹47,102 per 10 gram after rising ₹400 in the previous session while silver declined 0.4% to ₹63,332 per kg. In global markets, gold remained in a tight range near the important level of $1,800 level as the the dollar recovered some ground following a slide driven by the US inflation data. Spot gold was down 0.2% at $1,800, off its one-week peak of $1,808.50 hit on Tuesday. A stronger dollar makes gold more expensive for other currency holders.
“As a result of a weaker-than-expected rise in U.S. inflation, international gold prices are trading sideways above $1800, adding to confusion regarding the Federal Reserve's schedule to begin asset cutting. On domestic front, MCX Gold October resumed slightly lower at 47246, trading with marginally bearish to sideways momentum. In the previous session, prices fell below 46700 for the first time in almost a month before rallying more than ₹500 to close at 47293. Market bounced from the support levels and we may expect bulls to dominate in the evening session," CapitalVia Investment Advisor said in a report.
Data released on Tuesday showed underlying US consumer prices increased at their slowest pace in six months in August. Gold is seen as a hedge against inflation but expectations that the Fed may go slow on unwinding stimulus measures helped gold's appeal.
Gold traders will now be watching Fed's two-day monetary policy meeting next week for more cues on tapering.
Among other precious metals, silver eased 0.3% to $23.77 per ounce while platinum fell to nine-month low of $925.50.
“Gold may witness choppy trade reflecting trend in US dollar as market players assess Fed’s monetary policy stance and China’s economic health. However, increasing challenges for global economy may keep prices supported," Kotak Securities said in a note.
“Amid other factors, gold ETF investors moved to sidelines after brief inflows earlier this week. Gold holdings with SPDR ETF were unchanged at 1000.21 tonnes yesterday. However, supporting gold price is persisting virus risks, mixed economic data from major economies, inflationary concerns, China’s regulatory crackdown measures and increased geopolitical tensions. As per WHO latest update, with nearly 4 million new cases reported globally in the past week (6-12 September), this is the first substantial decline in weekly cases in more than two months," the brokerage added. (With Agency Inputs)
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