Home >Markets >Commodities >Gold prices fall today for first time in four days, silver rates rise

Gold prices in India today edged lower after rising for three days in a row. On MCX, gold rates were down 0.09% to 48,355 per 10 gram while silver futures rose 0.23% to 69,840 per kg. In global markets, gold rates were higher near one-month high after US Fed chief reassured that he was in no rush to tighten policy. Spot gold was up 0.3% at $1,832.23 per ounce.

Large stimulus measures typically tend to support gold, which is often considered a hedge against inflation and currency debasement.

"Although gold rates are holding strong above the $1800/oz. mark one needs to be cautious as it is approaching two hurdles near $1836-oz. followed by $1850/oz. (52 DMA and 252 DMA respectively). Although the general bias is on the upside one has to be cautious as any uptick in dollar might pressurize gold," Kotak Securities said in a note.

"Supporting gold price is the increasing spread of the Delta variant has caused many countries to impose tighter restrictions hampering economic activity. Gold had recently benefitted from the higher inflation as its safe haven appeal increased as hedge against inflation. However if the US Dollar succeeds in trading higher that might not be a good news for gold," the brokerage added.

In his testimony before the Congress, Fed Chair Jerome Powell reiterated the central bank's plan to maintain stimulus initiatives until the economy fully recovers. However, Treasury Secretary Janet Yellen in an interview warned that inflation would remain elevated for months to come.

Equity markets across Asia were mostly lower today amid uncertainty over rising coronavirus cases and the risks to pandemic recoveries.

Amid other precious metals, silver rose 0.4% to $26.34 per ounce.

"Silver has been resisting the $26.60-26.65 mark as it has retreated from those levels last week. Having said that silver bulls will have to keep the prices above $26.60-26.65 for it to push further higher. Till then the view remains sideways to choppy as US Dollar moves might give a direction to gold that might have an impact on silver prices," Kotak Securities said.

(With Agency Inputs)

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