Gold price today fall for second time in 3 days, down ₹9,500 from record highs
1 min read . Updated: 07 Oct 2021, 10:50 AM IST
Premium- Gold rate today continues to be pressurized by a stronger US dollar
Gold rates in India fell for the second time in three days as a stronger dollar put pressure on global prices. On MCX, gold futures fell 0.13% to ₹46,845 per 10 gram while silver was off 0.06% to ₹61,040 per kg. In global markets, gold prices edged lower as investors were cautious ahead of a US payrolls data due tomorrow. Spot gold fell 0.2% to $1,758.93 per ounce. The dollar held firm close to one-year high as investors amid inflation concerns and expectations that the Fed would have to act sooner to normalise policy.
A stronger dollar makes gold less appealing for those holding other currencies.
“Gold prices were flat today investors moved to the sidelines ahead of a U.S. payrolls report that is expected to provide clues on the Federal Reserve’s tapering timeline tomorrow. Also ease in US 10 year bond yields provided support to prices. Technically, gold has not been able to cross major resistance level of $1776 and traders will watch this level actively after payroll data tomorrow," says Vidit Garg, director at MyGoldKart.
For today, $1770 remains resistance while $1756 may act as a support and break of this level can lead it to $1742, he added.
Analysts say that though inflationary concerns provide support to gold, tapering of stimulus measures by central banks and consequent increase in bond yields increase the opportunity cost of holding gold.
The yield on 10-year US Treasuries remained above 1.5%.
Economists expect US nonfarm payrolls data to show an improvement in the labour market, which could prompt the Fed to begin start tapering before year-end.
Among other precious metals, spot silver fell 0.2% to $22.55 per ounce while platinum dropped 0.5% to $979.46.
“Gold prices are expected to trade with a negative bias on strong dollar. Further, market participants are worried rising inflation and continued growth in labour market may prompt Federal Reserve to begin tapering its monetary stimulus soon. Investors will take cues from US unemployment claims data. Hence, we expect gold prices to trade in the range of ₹46500- 47100 levels during the day," ICICI Securities said in a note.
(With Agency Inputs)
