Gold prices slip but silver rates see sharp fall1 min read . Updated: 25 Jul 2019, 12:19 PM IST
- Firm US dollar and profit-taking by investors weighed on gold prices
- Silver also saw profit-taking after the recent rally
Gold prices edged lower in Indian markets today, reflecting the global trend. Silver prices however witnessed a sharper fall. On MCX, August gold futures were off 0.14% at ₹34,980 per 10 gram while October contracts slipped 0.1% to ₹35,560. September silver contracts fell 0.55% to ₹41,558 per kg. In global markets, gold prices slipped today as investors locked in profits ahead of major central bank meetings this month. A higher US dollar, which hovered near multi-week highs against a basket of currencies, also weighed on gold prices.
A stronger dollar makes gold costlier for holders of other currencies. Spot gold was down 0.3% at $1,422.03 per ounce.
The European Central Bank is meeting later in the day, followed by the US Federal Reserve next week. The US Fed is widely expected to lower interest rates, its first cut in a decade. A 50-bps cut will provide further boost to gold prices, say analysts.
Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
A series of purchasing manager index (PMI) readings in the United States and Europe on Wednesday came in weaker than expected, further boosting hopes of lower interest rates.
Driven by a dovish outlook from major central banks, signs the US economy is losing steam and an escalation in Middle East tensions, gold prices are up 12% since early May.
Silver prices in global markets fell 0.6% today to $16.48 per ounce, after hitting over a one-year high of $16.64 in the previous session. (With Agency Inputs)