Gold prices today down at 8-month lows after falling for 6th day in a row2 min read . Updated: 19 Feb 2021, 03:56 PM IST
- Gold rates in India are down about 8% so far this year
- As compared to August highs, gold is down more than 10,000 per 10 gram
Gold and silver prices in India continued their decline in Indian markets as global rates also softened amid rising US bond yields. On MCX, gold futures slipped 0.33% to ₹45.963 per 10 gram to near the lowest level in 8 months, while silver futures fell 0.1% to ₹68435. After a huge rally in 2020 which pushed rates to record highs of ₹56,200 in August, gold rates in India are down about 8% or 4,000 per 10 gram so far this year.
MCX gold holds major support at ₹46,000 levels which when breached with heavy volume may lead to heavy decline in the upcoming sessions, says Kshitij Purohit, Lead – International & Commodity, at CapitalVia Investment Advisor.
MCX silver is likely to sustain above support of 68500-68000 levels and a bounce back from the support levels may lead the prices to ₹70,000 levels, he added.
In global markets, gold prices also today continued their recent slide, falling to lowest in more than seven months. Spot gold fell 0.4% to $1,769.03 per ounce, declining about 3% so far this year. Rising US Treasury yields, which hovered close to a near one-year high, have hurt the appeal of non-yielding gold. Higher yields increase the opportunity cost of holding bullion, which pays no interest.
Among other precious metals, silver in global markets eased 1.1% to $26.71 an ounce, down about 2.5% so far this week. Platinum slipped 2.4% to $1,244.19, while palladium shed 0.7% to $2,334.58.
According to Bloomberg, the 7% decline in spot gold so far in 2021 is the worst start to a year since 1991. However some analysts still have a positive view on gold, saying that prospects for additional stimulus and Federal Reserve's easy monetary policy makes the metals a good bet for medium-to long-term.
"Investors have continued to exit gold as is evident from ETF outflows. There is also an increasing debate about bitcoin becoming “digital gold" and this can also be subsumed from the diverging trend seen in gold and Bitcoin in last few days. While gold slumped to multi month low, Bitcoin has hit new all-time highs," Kotak Securities said in a note.
"Supporting gold price is increasing efforts by US policymakers to get the $1.9 trillion package approved. Meanwhile, central banks are also maintained support for loose monetary policy stance. Minutes of Fed’s Jan. meeting showed that the Fed officials did not see the conditions for reducing their massive asset-purchase program being met for 'some time'," the brokerage added.
(With Agency Inputs)
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