Gold price today falls after a big jump, silver rates dip
1 min read . Updated: 01 Oct 2021, 10:42 AM IST
Premium- In the previous session, gold had surged ₹800 per 10 gram while silver had surged ₹1200 per kg
Gold and silver were subdued in Indian markets after a big jump in the previous session. MCX gold futures were down 0.03% to ₹46,505 per 10 gram while silver futures dipped 0.05% to ₹59,588 per kg. In the previous session, gold had jumped 1.7% or ₹800 per 10 gram while surged 2% or ₹1,200 per kg.
In global markets, gold prices softened after a surge in the previous session. Spot gold fell 0.1% to $1,754.64 per ounce as the dollar rebounded and made the metal expensive for holders of other currencies. In the previous session, gold had surged to one-week high as the dollar index slipped.
For gold, trend remains choppy with negative bias as long as it stays below $1760, says domestic brokerage Geojit.
Among other precious metals, silver fell 0.6% to $22.06 per ounce while platinum was down 0.9% to $954.51.
"If silver is unable to move past $23.10, expect weak bias; else, recovery rallies are possible, Geojit added.
The US dollar today was close to its highest level of the year, recouping most of Thursday's losses.
“Gold had tested multi week low after breaking below the $1740/oz level and while momentum looks negative, we do not expect a sustained decline as global growth worries may keep a floor to prices," Kotak Securities said in a note. Earlier this week, gold had hit a near six-month low of ₹45,700 in Indian markets.
Gold and silver are being pressurized by by firmness in US dollar amid increased expectations of Fed’s monetary tightening, say analysts. Also weighing on silver are demand concerns amid slowdown in manufacturing activity and concerns about health of Chinese economy, they added.
Data released on Thursday showed an unexpected rise in weekly U.S. jobless claims to a seasonally adjusted 362,000 for the week ended Sept. 25. Economists in a Reuters poll had forecast 335,000 applications.
Gold is traditionally seen as an inflation hedge but reduced central bank stimulus tend to push government bond yields up. Higher interest rates increase the opportunity cost of holding gold that pays no interest. (With Agency Inputs)
