Gold price today struggles, down ₹1,600 in 5 days, silver edges higher1 min read . Updated: 25 Nov 2021, 04:06 PM IST
- Gold rate has corrected sharply over the past one week after hitting a nine-month high earlier this month
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Gold prices today edged up 0.2% in Indian futures markets to ₹47,530 per 10 gram after a recent correction that has driven prices down ₹1,600 in five days. Silver rates rose 0.5% to ₹62,981 per kg. In global markets, gold ticked higher, supported by a pullback in US dollar but expectations for faster tapering of asset purchases by Fed capped the precious metal's gains. Spot gold rose 0.2% to $1,792.20 per ounce. The US dollar eased 0.2% against a basket of rivals after hitting a 16-month in the previous session.
Among other precious metals, spot silver rose 0.3% to $23.60 per ounce while platinum gained 1.9% to $992.55.
“Gold has edged up after taking support near $1780/oz level. Pause in US dollar index and bond yields has lent support to gold. FOMC minutes confirmed that Fed officials are worried about inflation and ready to fasten monetary tightening measures however it was well anticipated hence we did not see much reaction from US dollar and yields. Amid other factors, gold ETF investors also moved to sidelines awaiting fresh triggers. Gold is off the lows however a sustained rise is difficult with US dollar still on a firmer side," said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
Global equity markets were mostly higher today as strong US economic data outweighed jitters over inflation and a faster tapering of Federal Reserve stimulus.
A drop in jobless claims in US to a five-decade low, along with a surge in consumer income and spending, reinforced optimism that the United States is well on the recovery track but added to pressure on the central bank to prevent overheating.
Several U.S. Federal Reserve policymakers have said in recent days that they would be open to speeding up the tapering of the central bank's bond-buying programme if the high rate of inflation held, and move more quickly to raise interest rates, minutes of the Fed's Nov. 2-3 policy meeting showed.
The Fed's next meeting is scheduled on December 14-15. Gold is often seen as a hedge against rising inflation, but reduced stimulus and higher interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest. (With Agency Inputs)
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