Active Stocks
Fri Sep 29 2023 15:59:14
  1. Tata Steel share price
  2. 129 1.78%
  1. NTPC share price
  2. 245.65 3.3%
  1. Power Grid Corporation Of India share price
  2. 199.85 -0.45%
  1. State Bank Of India share price
  2. 598.7 1.48%
  1. Wipro share price
  2. 406.25 0.11%
Business News/ Markets / Commodities/  Gold price today falls sharply, down 9,000 from all-time highs, silver slumps

Gold price today falls sharply, down ₹9,000 from all-time highs, silver slumps

Gold has retreated after hawkish tone was reflected from Fed  minutes and higher US bond yields.

Gold rate today struggled around  ₹47,700 on MCXPremium
Gold rate today struggled around 47,700 on MCX

Gold prices fell sharply in Indian markets today, tracking a decline in global rates.  On MCX, gold futures were down 0.5% to 47,772 per 10 gram while silver slumped 1.4% to 61,370 per kg.  A jump in US bond yields following release of minutes from the last Federal Reserve has put pressure on global gold rates that were down to about $1,810.56 per ounce. 

According to minutes from the Fed's December 14-15 policy meeting, Fed officials said last month that the U.S. labor market was "very tight" and it might need not just to raise interest rates sooner than expected, but also reduce asset holdings quickly. 

Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said: “COMEX gold has slipped as FOMC minutes showed that Fed officials are considering faster rate hikes and also reducing the balance sheet. The losses are however limited by increasing virus concerns. Gold has once again corrected after failing to sustain above $1830/oz but has so far managed to hold above $1800/oz level. With mixed factors in place, price may remain in a broad range however general bias may be on the downside as Fed’s stance may keep US dollar supported."

Though gold is seen as a hedge against higher inflation, but bullion is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion.

Gold gave a pullback after hawkish tone was reflected from Fed and higher US bond yields.  “Technically Gold is moving in range of $1790 - 1830 and it needs a trigger to break this range. As of now it's trading near 9-day EMA of $1808 below which it can touch $1,803 and $1,798 while RSI and ADX are suggesting a very range bound movement, " says Vidit Garg, director at MyGoldKart.

Among other precious metals, spot silver fell 1.1% to $22.78 an ounce while platinum was up 0.9% at $980. 

In global markets, gold fell nearly 4% last year, in its worst performance in six year. In India, gold also struggled in 2021 and is down about 9000 from its August 2020 highs of 56,300. 

(With Agency Inputs)

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 06 Jan 2022, 11:44 AM IST
Next Story
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App