Gold prices today fall after rising ₹1,500 over 2 days, silver rates drop2 min read . Updated: 06 Jan 2021, 09:10 AM IST
- Gold prices had surged ₹1,500 in past two days
- Analysts say gold could rise further if Democrats in US win the two seats in the runoff contest in Georgia
Gold and silver prices fell today in Indian markets, following a sharp surge over the past two sessions. On MCX, gold futures were down 0.3% to ₹51,546 per 10 gram while silver futures declined 0.7% to ₹70,325 per kg. In the previous session, gold had jumped 0.6% while silver had jumped 1.2%, tracking a global rally. On MCX, gold futures had surged ₹1,500 per 10 gram in past two sessions. According to CapitalVia, MCX gold has support at ₹51,200 levels.
After logging about 25% gain in 2020, gold prices is being supported by coronavirus surge in in some parts of the world which clouds the outlook for a recovery. International gold and silver prices have gained in recent days owing to rise in number of global Covid-19 cases and more countries imposing lockdowns and tighter restrictions leading the investors to look up to safe-haven metals, says Kshitij Purohit of CapialVia.
"The gold-silver ratio declined this suggesting that gold is currently underperforming against silver. Recovery in US dollar capped the upside movement. Technically, international gold is trading on a positive note. It is sustaining below $1950 levels, breakout of which would lead the prices to test the levels of $1965-$1980 on the upside," he said.
On the domestic front, he added, "MCX February gold has been trading with bullish momentum and has already gained more than ₹1,500 since last week. Bullish momentum is expected to continue and test the levels of ₹52,000 on the upside. If prices decline, then it could test 23.6% retracement levels of 51226."
MCX silver faces resistance at ₹70,700-71500 levels, a breakout of which could lead the prices to test the levels of 72000 on the upside, Mr Purohit said, adding that support is at 69800-69300 levels.
In global markets, gold prices today held firm at $1,948.20 an ounce after hitting a two-month high near $1,955 earlier in the day. Investors awaited the outcome of elections in Georgia, US, that will determine control of the Senate. Analysts say that gold prices could be lifted if Democrats win the two seats in the runoff contest as it would mean an easier path to approving more fiscal stimulus by Joe Biden.
The 10-year U.S. Treasuries yield rose to as high as 0.987%, the highest level since March, on expectations of larger government borrowing.
Among other precious metals, silver shed 0.7% to $27.39 an ounce. On the other hand, platinum fell 1.4% to $1,095.82, while palladium eased 1% at $2,442.42.
Gold traders await the minutes of the US Federal Reserve's December 15-16 policy meeting scheduled for release later today.
(With Agency Inputs)