Gold price today falls to lowest in 2 weeks, silver rates drop1 min read . Updated: 01 Sep 2021, 10:02 AM IST
- Gold rate today fell for third day in a row while silver prices fell sharply
Gold prices edged lower today in Indian markets amid a strengthening of the rupee. On MCX, gold futures dipped to ₹47,095 per 10 gram, extending losses to the third day, while silver futures dropped 0.33% to ₹63,156 per kg. Continuing with its recent upsurge, the rupee on Tuesday strengthened further by 29 paise to close at a nearly 12-week high of 73 against the US dollar. Gold prices in India include 10.75% import duty and 3% GST. A stronger rupee makes imports of the dollar-denominated precious metal cheaper.
In global markets, gold rates were flat today ahead of a key US jobs report that analysts say could offer more clues on when the Federal Reserve might start reducing its stimulus measures. Spot gold was flat at $1,813.93 per ounce. Weighing on gold, the dollar index inched 0.09% higher, after having hit a more than three-week low on Tuesday.
Among other precious metals, silver was flat at $23.88 per ounce, while platinum rose 0.3% to $1,015.49.
Last week, Fed Chairman was less hawkish as was anticipated at the Jackson Hole Economic Symposium, triggering a rally in equities. But analysts say there is still not much clarity about Fed’s monetary policy and market players may continue to react to economic numbers and Fed comments to gauge future move.
“Market players are now gearing for the US non-farm payrolls data this week which will reflect upon health of US labour market and give further direction to debate about Fed’s monetary tightening," says Kotak Securities.
ETF outflows show weaker investor interest. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, to its lowest level in 4 months 1,000.26 tonnes.
Amid other factors, gold remains supported by persisting virus concerns, uneven global economic recovery, concerns about China’s regulatory crackdown measures and increased geopolitical tensions, say analysts. Virus cases have continued to rise forcing countries to continue with restrictions hampering economic activity. However, they add, weighing on price is persistent strength in equities which reduces gold’s appeal as an alternative asset.
Gold may witness choppy trade as expectations for Fed’s monetary policy may keep US dollar and equities volatile however persisting risks to global economy may keep prices supported, says Kotak Securities in a report. (With Agency Inputs)
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