Gold and silver rates had fallen sharply last week in India
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Gold and silver rates struggled in Indian markets today amid subdued global cues. Gold prices edged up 0.14% to ₹46,872 per 10 gram but still hovered near 1-month low. Silver continued the weak trend, falling 0.4% to ₹63,345 per kg. In the previous session, gold had dropped 0.4% while silver slumped 0.9%.
In global markets, gold struggled today after a sharp decline in the previous week. Investors remained cautious ahead of a crucial US consumer price reading due later this week. Spot gold was flat at $1,787.40 per ounce, after falling 2.1% in the previous week.
Also, a stronger US dollar weighed on gold. The dollar index edged higher to 92.632, after a 0.6% gain last week.
“If the support of $1,770 remains hold, chances of recovery upticks in gold are still on cards. A direct drop below the same would call for corrective selling," domestic brokerage Geojit said in a note.
Among other precious metals, silver was flat at $23.72 palladium traded up 0.3% at $2,145.03.
“Expect a choppy trading for silver with mild negative bias for the day. Further rallies are seen only a break of $24.60," Geojit said.
US consumer-price data will be announced on Tuesday that could be crucial to Federal Reserve's decision on when to taper its stimulus. Ahead of the US consumer inflation data, US producer prices released on Friday showed inflation pressure, leading to the biggest annual gain in nearly 11 years. The reading also pushed benchmark U.S. 10-year Treasury yield higher.
Higher yields mean higher opportunity cost for holding non-interest bearing gold. The US Fed later this month to decide on its monetary policy.
In India, retail gold demand remained subdued due to the volatility in prices. Latest data showed invest gold ETF in India attracting inflows of ₹23.92 crore last month which took the overall assets under management to ₹16,349.82 crore. (With Agency Inputs)