Gold prices today near 7-month lows after big fall over four days1 min read . Updated: 05 Feb 2021, 09:34 AM IST
- The recent fall in global rates and import duty cut in Budget has pushed gold rates in India to near multi-month lows
Gold prices today struggled to edge higher after a sharp four-day fall. On MCX gold futures were up 0.3% to ₹46,857 per 10 gram while silver advanced 0.6% to ₹67,239 per kg. In the previous session, gold had dropped over ₹1,000 or 2% per 10 gram while silver had slumped ₹1,500 or 2.1% per kg. The recent fall in global rates and import duty cut in Budget has pushed gold rates in India to near seven-month lows. In August gold had hit a record high of ₹56,200 per 10 gram.
In global markets gold prices edged up but still remained below the key psychological $1,800 level. Spot gold added 0.2%, at $1,795.30 an ounce after dropping over 2% in the previous session. A stronger US dollar and rising US Treasury yields dented gold's appeal.
"As prices cleared the support of $1800 sentiment turned into negative but, breaking $1764 is required to continue the momentum. Else, there are chances of slight recovery uptick for the day. A direct break above $1880 could negate the current momentum and lift prices higher," Geojit said in a note.
MCX gold faces resistance at ₹48,150 while has support at ₹45,750, it added.
Silver prices have dropped sharply in global markets since a GameStop-style retail frenzy sent them to their highest level in nearly eight years. On Monday, silver rates had zoomed to $30.03. Spot silver shed 0.1% to $26.27 an ounce.
Higher yields raise the opportunity cost of holding non-yielding bullion though gold usually gains from more stimulus, since it is considered a hedge against inflation.
A stronger US dollar makes gold more expensive for holders of other currencies. The dollar index has risen to more than two-month peak while longer-term U.S. Treasury yields rose on anticipation of a large pandemic relief package from Washington and a stabilizing US labor market.
Analysts say that the passage of US President Joe Biden's $1.9 trillion COVID-19 may likely support gold at lower levels.
Among other precious metals, platinum lost 0.1% at $1,095.93 an ounce and palladium gained 0.6% to $2,296.23. (With Agency Inputs)
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