Gold price today inches higher after sharp fall, down ₹9,000 from record highs1 min read . Updated: 31 Aug 2021, 10:12 AM IST
- Gold price in India have been volatile this month, falling earlier near four-month low before seeing some recovery
Gold and silver prices inched higher today in Indian market after a sharp fall in the previous session. On MCX, gold futures were up 0.25% to ₹47,171 per 10 gram, following a ₹400 fall on Tuesday. Silver futures rose 0.35% to ₹63,801 per kg. Gold prices have been volatile this month, falling to near four-month low of ₹45,600 before seeing some recovery. Gold had hit a record high of ₹56,200 in August last year.
US dollar index and treasury yields declined marginally this week which boost prices of safe heaven assets like gold, given its sensitivity to inflation, says Capital Via Investment Advisor. “On the domestic side, MCX Gold future has formed a broadening wedge pattern. The key support level is at ₹46,900 whereas resistance holds near ₹47,740," it added.
Globally, gold prices were flat today, supported by a subdued US dollar. Spot gold rose 0.1% to $1,812.27 per ounce. Among other precious metals, silver fell 0.1% to $24.03 per ounce, while platinum eased 0.3% to $1,003.89.
“While gold prices stay above $1815 expect rallies to continue in the counter. A direct drop below $1780 would trigger further selling pressure," says domestic brokerage Geojit.
For silver, “stability above $23.90 would lift prices further higher. Else, there are chances of range bound trading for the day," the brokerage added.
Gold traders will be looking ahead to US non-farm payrolls data, due later this week. The dollar index today hovered near two-week lows against a basket of currencies after it fell 0.09% to 92.567. On Friday, Fed chief Jerome Powell eased concerns about tapering, saying that the US central bank would be cautious in winding down its ultra-loose monetary policy and was in no hurry to lift interest rates.
Gold is considered a hedge against inflation and currency debasement in the wake of massive stimulus measures. Equity markets in Asia were mostly lower today as weaker economic activity in China and the latest regulatory crackdown by Beijing. (With Agency Inputs)
Never miss a story! Stay connected and informed with Mint. Download our App Now!!