Gold prices today drop to lowest in 5 months after big fall1 min read . Updated: 17 Sep 2021, 09:39 AM IST
- Gold rates today on MCX were down for third day in a row
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Gold and silver rates struggled in Indian markets today after a sharp fall in the previous session. On MCX, gold futures were down slightly to ₹46,050 per 10 gram while silver edged up 0.26% to ₹61,233 per kg. In the previous session, gold had dropped 1.7% or ₹807 per 10 gram, extending fall to ₹1200 in three days. Silver had slumped ₹2150 or 3.5% per kg in the previous session.
In global markets, spot gold rates were flat at $1,754.86 per ounce after a sharp fall in the previous session. A firmer dollar hurt the allure of gold for holders of other currencies. Investors were cautious ahead of next week's Federal Reserve meeting for clues on how soon the central bank will start to taper stimulus. Among other precious metal, silver was flat at $22.93 per ounce, after hitting its lowest in more than a month on Thursday while platinum rose 0.6% to $938.88.
“Till gold prices stay below $1,770, expect weakness to continue the day. Further rallies are seen only a close above $1815," domestic brokerage Geojit said.
Technically, “if silver breaks below $22.50 liquidation pressure would extend the day. Immediate turnaround point is at $25," the brokerage added.
The dollar index hovered near three-week highs against a basket of major currencies after strong US retail sales data. This tempered expectations for a sharp slowdown in economic growth in the third quarter.
“As a result of a recent weaker-than-expected rise in US inflation, international gold prices are trading with bearish bias below $1800, adding to confusion regarding the Federal Reserve's schedule to begin asset cutting. Next week, the Fed will announce its latest policy decision, which could provide insight into the central bank's future plans Technically, international gold is trading with bearish momentum," says Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research.
The Fed's Open Market Committee's two-day policy meeting will start on September 21 and analysts expect the central bank to give clues as to when it will start reducing its bond purchases.
Reduction in bond purchases typically tends to lift bond yields, which raises the opportunity cost of holding non-interest bearing gold. It also helps boost the dollar, further weighing on bullion. (With Agency Inputs)
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