Home / Markets / Commodities /  Gold prices today drop, down 9,000 from record highs, silver rates rise

Gold prices were muted today in India's futures market with MCX gold down marginally at 47,223 per 10 gram while silver rates rose 0.22% to 63,598 per kg.  In the previous session, gold had risen 0.47% while silver had gained 0.54% amid volatile trade. Gold has been very volatile in recent days, tracking US macro data. 

Last week, gold had hit a four-month low of 45,600 before seeing some recovery. Gold had risen to a record high of 56,200 levels last year. 

In global markets, gold rates were steady today at $1,787.90 per ounce while silver rose 0.3% to $23.89 per ounce. Among other precious metals, platinum inched up 0.1% to $1,023.52.

“Gold is required to break $1,815 to continue further upticks in the counter. For silver, consistent trades above $23.90 is required to lift prices higher," says domestic brokerage Geojit in a note. 

Analysts say that gold was supported amid safe-haven demand from rising Delta variant cases and geo-political tensions but a firmer dollar capped gains. The dollar index held firm at 92.71 against other rivals.

Analysts have attributed the recent volatility in gold to uncertainty over timing of Fed's tapering. “More is in store as Fed’s monetary tightening debate is wide open. Market uncertainty is also high about economic impact of virus s related restrictions as well as health of Chinese economy. The strength in equities and lack of ETF buying however shows that investors are still not keep on buying gold," says Kotak Securities in a note. 

Gold traders will be now focusing on the minutes of Federal Reserve's July meeting due tomorrow for more cues on the central bank's stimulus tapering. Also, later today US Fed Chair Powell hosts a town hall discussion with educators.

However, ETF flows remained weak. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,020.63 tonnes on Monday.

Asian equity markets wobbled today amid signs of a slowing Chinese recovery, Beijing’s regulatory clampdown, fresh restrictions in some countries to fight the delta strain  and Afghanistan geo-political crisis. Meanwhile, China’s top legislative body, the National People’s Congress Standing Committee, begins a four-day meeting in Beijing. (With Agency Inputs)

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