Gold prices fall sharply after touching record high, silver follows suit1 min read . Updated: 23 Jul 2019, 10:40 AM IST
- Profit-taking weighed on gold prices
- Gold and prices have risen sharply this year
Gold prices today declined in Indian markets in tandem with a fall in global rates. On MCX, August gold futures were down 0.55% at 34,939 while October contracts were down 0.6% to ₹35,506. Tracking gold, silver prices also witnessed a sharp fall. Silver contracts on MCX were down nearly 1% at ₹40,886 per kg. On MCX, gold prices had hit a record high of ₹35409 last week. In Delhi spot market, gold prices had on Monday touched a new high of ₹35,970 per 10 gram.
In global markets, gold prices slipped today as the US dollar strengthened and some investors booked profit. Spot gold was down 0.5% at $1,417.80 per ounce.
Gold prices had surpassed $1,450 mark last week for the first time in more than six-years last week after New York Fed President John Williams boosted hopes of an aggressive rate cut.
The US Federal Reserve is is widely expected to lower interest rate at its meeting ending July 31, but expectations for a larger 50-basis point cut have waned amid mixed signals from Fed policymakers.
Further weighing on gold’s appeal, the dollar index rose 0.2% to a near one-week high, making gold expensive for holders of other currencies.
Among other precious metals, silver fell 0.7% to $16.23 per ounce and platinum eased 0.4% to $841. Gold traders will be watching for cues as European Central Bank (ECB) policy makers meets on Thursday.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.57% to 825.18 tonnes on Monday from Friday.
Analysts say that gold has support in the range of $1,401-$1,409 per ounce on the downside. Gold prices have risen sharply this year but traders say that high prices have hit demand. (With Agency Inputs)