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Home >Markets >Commodities >Gold prices today fall for first time after 6 days, silver rates drop

Gold and silver rates today slipped in Indian markets, tracking a decline in global rates. On MCX, gold futures dropped 0.3% to 47776 while silver rates fell 0.5% to 69008 per kg. In global markets, gold fell 0.4% to $1,797 an ounce amid a stronger US dollar after Federal Reserve minutes indicated a plan for tapering stimulus may be edging closer.

Asian equity markets also edged lower today while US futures dipped after the S&P 500 and Nasdaq 100 both closed at all-time highs.

"Lower US treasury yields and worries over the rise in new virus cases due to the more virulent Delta variant are keeping gold prices steady near $1800 an ounce. Meanwhile, a strong US dollar and optimistic global economic sentiment continue to dampen its safe asset appeal," says Hareesh V, Research Head Commodities at Geojit Financial Services.

Gold prices continue to be choppy inside $1820-1748 levels and breaking any of the sides would suggest a short-term direction for the commodity, he said, adding a close below $1745 is a bearish signal for the metal.

The minutes of Fed's June meeting indicated that while rising prices were expected as the US economy recovered from the pandemic, the inflation jump was higher than expected. And US central bank needs to be ready to pull back on its massive support programme if this persists but members did not give indication that a reversal was imminent.

The greenback added to gains against a basket of major currencies with the dollar index trading near the highest in three months versus its rivals, making gold more expensive for other currency holders.

However, a drop in benchmark US bond yields supported the precious metal at lower levels. Lower interest rates reduce the opportunity cost of holding non-interest bearing gold.

ETF inflows into gold remained muted. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.2% to 1,040.48 tonnes on Wednesday from 1,042.23 tonnes on Tuesday.

Among other precious metals, silver eased 0.2% to $26.07 per ounce while platinum slipped 0.4% to $1,080.37. (With Agency Inputs)

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