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Home >Markets >Commodities >Gold prices today fall for 6th day in a row, down 9,000 from record highs

Gold extended its losses to the sixth day day when futures on MCX were down 0.4% to 46909 per 10 gram. Silver futures rose 0.6% to 69,450 per kg but were off day's highs. In the previous session, gold had declined 0.42% while silver had slumped 1.75%. Last week gold rates in India had risen to two-month high of 48,400 and have corrected thereafter following decline in international prices.

After strong gains last year during which gold had hit a new high of 56,200, the precious metal has struggled this year amid rising US bond yields and optimism about economic recovery as vaccinations gain pace.

In international markets, gold rates failed to hold on to early gains and were down 0.3% to $1,777 per ounce. US Treasury yields rose and the dollar firmed, while investors awaited US GDP data due later today.

"Gold gained momentum after the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting. Concerns over the economic impact of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity market and signs of economic recovery in the US and China may dent major gains in the commodity," said Hareesh V, Research Head Commodities at Geojit Financial Services.

"Prices will continue with mild positive bias as long as $1760 hold the downside. Anyhow, major rallies are expected only if it breaks the next upside obstacle of $1820. A close below $1720 is a sign of immediate trend reversal."

Gold tends to benefit from widespread stimulus measures from central banks because it is viewed as a hedge against inflation. Overnight, the Fed said it will continue with asset purchases and described inflation pressures as likely “transitory."

On the other hand, gold's rise could be capped due to weaker investor interest and concerns about Indian demand amid higher price and virus related restrictions, say analysts.

Overnight, US President Joe Biden, in his first speech to Congress, said laid out a sweeping $1.8 trillion package for families and education.

Among other precious metals, silver gained 0.6% to $26.34 per ounce while platinum was up 0.3% at $1,222.93. On gold traders' radar will be US GDP data due tonight.

Asian equity markets were higher today after the Federal Reserve painted a rosy picture of the US economic outlook, reiterating a pledge to stick to its guns with an ultra-low monetary policy.

(With Agency Inputs)


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