OPEN APP
Home / Markets / Commodities /  Gold prices today fall for the first time in 6 days, silver rates drop
Listen to this article

Gold prices in India edged lower today tracking weak global cues. On MCX, gold futures were down 0.3% to 50,995 per 10 gram while silver dropped 0.27% to 61,811 per kg. Gold was in a rising streak over the past five session through it remained range-bound.  In global markets, gold prices dropped  the dollar firmed. Gold traders awaited minutes from the U.S. Federal Reserve's last policy meeting for cues on the central bank's upcoming interest rate hikes. Spot gold was down 0.5% at $1,857.39 per ounce.

The Fed is expected to release the minutes from its May 3–4 policy meeting at 11:30 pm later in the day. Among other precious metals, spot silver was down 0.6% at $21.95 per ounce while platinum eased 0.7% to $947.49.

Gold and silver prices rose to their highest in two weeks on Tuesday, with the safe-haven metal benefiting from a wilting U.S. dollar and as Treasury yields declined on subdued risk appetite," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. 

“For gold, the $1867.22 level is an important obstacle to watch out for, and above the same it will test $1888-$1900. Gold has support at $1852-1840, while resistance is at $1872-1880. Silver has support at $21.74-21.55, while resistance is at $22.28-22.48. In rupee terms, gold has support at Rs50,840–50,650, while resistance is at Rs51,340–51,550. Silver has support at Rs61,510-60,950, while resistance is at Rs62,380–62,710," he added. 

The dollar index strengthened after hitting its lowest level in a month in the previous session, making greenback-priced bullion more expensive for buyers holding other currencies. While gold is seen as an inflation hedge, higher short-term U.S. interest rates raise the opportunity cost of holding non-yielding bullion. 

“While US dollar and ETF flows seem to be driving gold, the metal remains pressurized by monetary tightening stance of major central banks. However, supporting price is global growth concerns as monetary tightening stance has intensified debate about a possible recession. Inflation pressure also remains high globally and this has also increased gold’s appeal as an inflation hedge," Kotak Securities said in a note. 

“With price near key $1850/oz level and varying factors at play, we are likely to see mixed trade. We however expect Fed’s tightening stance to keep US dollar supported and this may keep pressure on gold prices," Kotak Securities said in a note. 

 

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout