OPEN APP
Home / Markets / Commodities /  Gold price today falls, down 9,000 from record highs, silver rate drops
Listen to this article

Gold and silver today traded in a narrow range in Indian markets amid subdued global cues. Gold futures on MCX were down 0.06% to 47,469 per 10 gram while silver futures were down 0.3% to 65,410 per kg. Gold rates have been volatile this year after hitting a record high of 56,200 last year. 

In global markets, gold slipped today on elevated US Treasury yields but was supported on the downside from concerns over higher inflation. Spot gold fell 0.2% to $1,777.70 per ounce. Rising yields are typically negative for gold as it increases the opportunity cost for holding the yellow metal. Gold has been trading in the $1,750-$1800 for some time as US benchmark 10-year yields hit their highest in five months.

On the other hand, the dollar index was flat after having hit a three-week trough earlier in the session.

“Gold prices are supported by global inflation worries on power shortages. We expect gold prices to trade sideways to up with COMEX spot gold resistance at $1800 and support at $1770 per ounce," said Tapan Patel- Senior Analyst (Commodities), HDFC Securities.

Among other precious metals, spot silver fell 0.9% to $24.06 per ounce. Equity markets across the world were under pressure today as investors weighed corporate earnings, elevated inflation and the outlook for China’s property sector.

A top US Fed official this week said the central bank could begin tapering its bond-buying program next month, though interest-rate increases are probably “still some time off." 

Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers, said that the on-going inflation, driven by high energy prices and supply constraints worldwide, raised concerns that rate hikes could come sooner than expected, a painful prospect for gold. But recent data which showed a weaker Industrial production and lower than expected home sales in US raise doubts for early rate hikes, have improved sentiments for bullion. 

Upcoming speeches and discussions by officials including Randal Quarles, Mary Daly and Chair Jerome Powell will also be keenly watched ahead of the central bank’s meeting next month. (With Agency Inputs)

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout