Home / Markets / Commodities /  Gold price today fall to near lowest in 6 month but silver rates higher

Gold edged lower in Indian markets, tracking subdued global cues. On MCX, gold futures were down marginally to 45,984 per 10 gram while silver futures were up 1% to 60,517 per kg. In the previous session, gold had edged 0.13% lower to near 6-month lows while silver had slumped 1.4%. Gold has been volatile this year after hitting record high of 56,200 last year. 

In global markets, gold prices eased, pressured by an uptick in U.S. bond yields and a robust dollar. Spot gold was down 0.1% at $1,747.99 per ounce. Denting gold's appeal by raising its opportunity cost, benchmark 10-year U.S. Treasury yields rose to their highest level in nearly three months. The dollar also strengthened, adding further pressure.

Gold is often considered a hedge against higher inflation, but higher interest rates increase the opportunity cost of holding gold, which pays no interest.

Reports over the weekend said that Chinese authorities had ordered local housing chiefs to put Evergrande's cash in ringfenced accounts to make sure it is used to pay to complete construction projects.

Gold could see choppy movement in near term but direct break of $1725 would trigger major liquation pressure in coming sessions, says Geojit. 

Inflows into gold ETFs remained subdued. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings increased 0.1% to 993.52 tonnes on Friday from 992.65 tonnes on Thursday.

Among other precious metals, silver rose 0.6% to $22.55 per ounce. For silver, “a direct rise above $23.20 is needed to continue upticks. Else, selloffs likely for the day," Geojit added.

Gold traders will be closing watching Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen's testimony at a Senate Banking Committee hearing on Tuesday. On the same day, European Central Bank President Christine Lagarde will be speaking at an event.

(With Agency Inputs)

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