Gold price today fall for second day in a row, silver rates drop2 min read . Updated: 07 Sep 2021, 09:35 AM IST
- Gold rates have slipped in India after jumping to near one-month high last week
Gold and silver rates today edged lower in Indian markets amid subdued global cues. On MCX, gold rates slipped 0.04% to ₹47,406 per 10 gram while silver rates dropped 0.13% to ₹65,208 per kg. In the previous session, gold had edged 0.17% lower while silver rates rose 0.19%. In global markets, gold prices edged higher, supported by a weak US dollar. The prospects of the US Federal Reserve delaying its tapering of bond purchases also helped the yellow metal. Spot gold rose 0.2% to $1,826.75 per ounce.
For gold, “a breach of $1,835 is needed to continue further rallies in the counter, else, there are chances of corrective selling pressure," says domestic brokerage Geojit.
Bullion had hit a two-month high last week in international markets after disappointing US non-farm payrolls data. Gold is typically seen as hedge against inflation while lower interest rates reduce the opportunity cost of holding non-yielding bullion.
“Market players continue to assess US non-farm payrolls data. The data was mixed as it noted a much smaller than expected growth in jobs but also a drop in unemployment rate as well as strong growth in earnings. However, with disappointing headline numbers, market players have reduced expectations that Fed may start monetary tightening soon," Kotak Securities said in a note.
Among other precious metals, silver firmed rose 0.4% to $24.76 per ounce while platinum rose edged up to $1,020.26.
For silver, “if the support of $23.70 remain undisturbed expect rallies for the day. A direct drop below the same is a sign of weakness," says Geojit.
Gold traders will now focus on ECB meeting later this week. “Rising inflation pressure and some hawkish comments from ECB officials has fueled expectations that the central bank," Kotak Securities said.
may hint towards tapering of bond purchases soon. However, some ECB officials have warned against early tightening amid persisting virus risks.
With the euro zone economy roaring back to life, the European Central Bank will debate a cut in its stimulus on Thursday, beginning a hard-fought and lengthy discussion on how to dismantle the crisis-fighting measures that have kept the bloc afloat.
India's gold imports in August nearly doubled from a year earlier as a price drop prompted jewellers to ramp up purchases for the festive season, Reuters reported, citing sources.
Asian equity markets were mixed today though Japan’s Nikkei 225 hit 30,000 for the first time since April on optimism that a new prime minister will usher in favorable policies. Traders weighed the resilience of a global recovery in the backdrop of challenges from the delta virus strain. S&P 500 and Nasdaq 100 futures edged up ahead after a holiday on Monday. (With Agency Inputs)
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