Home / Markets / Commodities /  Gold prices today fall to near 2-month lows, silver rates slide

Gold prices in India remained weak near two-month lows today as futures on MCX fell 0.4% to 46,881 per 10 gram. Silver futures too were lower, down 0.6% to 67,520 per kg. If MCX gold is unable to move past 47500, then there are chances of a continuation of corrective selloffs, says domestic brokerage Geojit. Meanwhile, a close below 46400 is an early signal of long liquidation pressure.

In global markets, gold retreated below $1,775, hurt by a stronger US dollar that made the precious metal more more expensive for holders of other currencies. Spot gold was down 0.2% at $1,774.96 per ounce while silver was steady at $25.87 per ounce. Meanwhile, the dollar index held firm at near 11-week high of 91.815 against its rivals.

Investors weighed mixed signals from Federal Reserve officials on rate hike and awaited more US data to gauge inflationary pressures. A day after Fed Chair Jerome Powell downplayed inflation worries in his testimony to Congress, two Fed officials on Wednesday said that a period of high inflation in America may last longer than anticipated.

Though gold is often seen as a hedge against inflation, a rate hike by the Fed will increase the opportunity cost of holding bullion.

"A firm US dollar and a steady performance of risky assets continue to hit the safe-haven appeal of gold. Expectations of a rate hike from the US Federal Reserve and optimistic global economic sentiment too contributed to the fall. Meanwhile, concerns over inflation restricted major selloffs in prices," said Hareesh V, Research Head Commodities at Geojit Financial Services.

"We can expect choppy trading with recovery bias as long as prices stay above $1754. However, major rallies are seen only a close above $1855. A direct drop below $1745 would trigger further liquidation pressure on the counter," he added.

On silver, Geojit said: "There are chances of recovery upticks if prices continue to hold the stiff support of $25.50. A direct drop below the same is ashort term liquidation signal. Anyhow, immediate upside turnaround point is seen at $28.50."

(With Agency Inputs)

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