Gold price today falls, a day after hitting near 6-month lows, silver edges up1 min read . Updated: 21 Sep 2021, 10:08 AM IST
- Gold rate today was supported on the lower side by a global selloff in equity markets but a stronger dollar weighed
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Gold prices today edged lower in Indian markets amid subdued global cues. On MCX, gold futures were down 0.1% to ₹46,233 after hitting a near 6-month low of ₹45,880 in the previous session on intra-day basis. Silver futures on MCX were flat at ₹59,657. In global markets, gold was marginally lower at $1,764.94 an ounce despite a selloff in global equity markets. Investors remained cautious ahead of US Federal Reserve's policy two-day policy meeting starting today. Analysts expect Fed to provide cues on when it will begin tapering its asset purchases.
“While gold prices stay below $1770, expect weakness to continue the day. Further rallies are seen only a close above $1815," domestic brokerage Geojit said in a note.
Gold is viewed as a hedge against inflation and currency debasement likely resulting from the widespread stimulus. An eventual interest rate hike would also raise the opportunity cost of holding the non-interest bearing asset.
The US inflation numbers were high in recent months even as the job additions were below expectation. The precious yellow metal displayed a cautious move awaiting fresh cues from Fed, say analysts.
Gold rates had recovered from near six-month lows on safe-haven demand as China's Evergrande debt woes fueled sharp sell-off in stocks worldwide but bullion failed to sustain gains amid a firmer dollar. A stronger greenback generally makes bullion more expensive for other currency holders. Concerns over the fallout from property developer Evergrande's solvency issues have spooked stock markets worldwide and drove investors to safe-haven assets.
Among other precious metals, silver edged up 0.1% to $22.26 per ounce after hitting multi-month lows in yesterday's session.
Expect a range bound with mild positive bias in gold as long as the support of $21.2 hold the downside, the Geojit said.
Gold ETF flows have remained muted this month amid price volatility. “The SPDR gold backed ETFs physical holdings witnessed a moderate change so far in September by a 0.03% declined after 3.02% outflows August," the brokerage said in a recent note.
(With Agency Inputs)
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