Home / Markets / Commodities /  Gold price today falls sharply, silver rates slump

Gold and silver rates fell sharply in Indian markets today, tracking a drop in international rates. On MCX, gold futures were down 0.6% to 46,377 per 10 gram while silver rates slumped 1%. In the previous session, gold had ended flat while silver surged 1.2%. In global markets, gold rates today dropped after US Federal Reserve after its two-day meeting, which ended on Wednesday, signalled easing its monthly bond purchases. 

Spot gold was down 0.3% at $1,762.33 per ounce. The dollar index hovered near one-month high, diminishing gold's appeal for those holding other currencies.

Intraday support for MCX gold is near 46,100 whereas resistance is seen near 46900, says SMC Global in a report. “Silver may also trade with bearish bias selling near resistance is expected. Intraday support for MCX silver holds at RS 59,900 resistance near 61,200," the brokerage added. 

Fed chairman Jerome Powell said the central bank could begin scaling back asset purchases in November and complete the process by mid-2022. Fed officials also revealed a growing inclination to raise interest rates next year. A rate hike increases the opportunity cost of holding gold, which pays no interest.

Gold could remain under pressure in the near term, said domestic brokerage Geojit, adding that major rallies are seen only a close above $1815.

Among other precious metals, silver fell 0.3% to $22.60 per ounce while platinum edged lower to $994.84. 

For silver, “a direct rise above $23.20 is needed to continue upticks. Else, selloffs likely for the day," says Geojit. 

Trend in US dollar, bond yields and equities may continue to affect gold and silver and focus will be on US and European economic data development relating to virus situation, China’s regulatory crackdown measures and geopolitical tensions, analysts said. 

(With Agency Inputs)

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