BackGold prices today fall for second day, after hitting 2-month high, silver drops
Gold and silver rates had suffered a sharp fall in previous sessionIn India, gold rates are still up ₹3,700 so far this month
PremiumGold and silver rates edged lower in Indian markets after a sharp drop in the previous session. Gold futures were down 0.02% to ₹47763 per 10 gram while silver declined 0.43% at ₹68,918 per kg. In the previous session, gold had declined 0.83% while silver had slumped 1.6%. In global markets, gold rates edged higher amid falling US Treasury yields and a softer dollar. The precious metal was also supported by weak global equity markets. Earlier, this week, gold had hit a two-month high of ₹48,400.
On MCX, gold rates have support at ₹46,200 per 10 gram while faces resistance at ₹48,240, domestic brokerage Geojit said. In India, gold has risen about ₹4,000 so far this month, tracking a recovery in global rates.
In international markets, spot gold was up 0.2% at $1,787.11 per ounce. The precious metal is up about 0.6% so far this week.
"Inability to break the immediate support of $1760 there are chances of recovery upticks which may lead gold prices towards $1820 or more for the day. At the same time, an unexpected drop below $1725 is a bearish signal," domestic brokerage Geojit said in a note.
The dollar index fell 0.13% to 91.198 against its rivals, making gold cheaper for other currency holders. US 10-year Treasury yields edged lower on news that Biden will propose a tax hike for high earners.
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers on Gold, said that a sagging dollar and weaker U.S. Treasury yields boosted the metal's appeal. "Adding to the bullish tone, demand from China has bounced back from low levels, with Beijing permitting domestic and international banks to import large amounts of gold into the country. Sentiment is positive but we don't deny profit booking also," he said.
Among other precious metals, silver eased 0.3% to $26.10 per ounce while platinum was steady at $1,203.10.
For silver, a direct rise above $26.50 would extend the buying momentum towards $28 or more, says Geojit. Else, there are chances of corrective selling, but major downside reversal point is placed at $23.80, Geojit said.
Asian stock markets were mostly lower today after a sharp overnight fall on Wall Street on a news report that the Biden administration is considering raising the tax on capital gains for fund social plans.
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