Gold prices today fall after hitting one-month high, silver rates flat1 min read . Updated: 15 Jul 2021, 09:58 AM IST
- Gold prices had jumped nearly 1% in previous session and is up about ₹2,000 so far in India this month
Gold prices today edged lower in Indian markets after a sharp gain in the previous session. On MCX, gold futures were down 0.1% to ₹48265 per 10 gram after posting nearly 1% gain in previous session that took prices to one-month high levels. Silver rates were also flat today at ₹69,480 per kg. In global markets, gold rates were flat at $1,824.81 per ounce after hitting four-month high of $1,829.55 in the previous session.
In his testimony before the Congress, Fed chief Jerome Powell reiterated his view that the current spike in inflation is transitory and that the central bank is transitory and the central bank is focused on getting as many people back to work as possible. Data released on Tuesday had showed that US consumers surged in June by the most in 13 years.
Gold, which is seen as a hedge against inflation and currency debasement, benefits from large stimulus measures .
Hareesh V, Research Head Commodities at Geojit Financial Services, said: "Spot gold edged higher to a four-week high on dovish comments from the US Federal Reserve Chain Jerome Powell that boosted the metal’s inflation hedge appeal. Worries over the rise in new virus cases due to the more virulent Delta variant also offered support to prices. Meanwhile, a strong US dollar and optimistic economic sentiment continue to hit its safe haven demand."
If the support of $1800 remains, there are chances of recovery upticks in gold rates towards $1845 followed by $1880 levels, he said, adding an unexpected drop below $1780 is an early signal of liquidation pressure.
Among other precious metals, silver fell 0.3% to $26.16 per ounce while platinum dipped 0.5% to $1,123.83.
Silver prices remain inside the tight trade inside $26.80-25.40 levels and breaking any of the sides would suggest fresh direction to the commodity for the day, say analysts. (With Agency Inputs)
Never miss a story! Stay connected and informed with Mint. Download our App Now!!