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Home >Markets >Commodities >Gold prices today slide for 3rd day in a row, down 8,000 from record high

Gold and silver rates remained weak today in Indian market amid recent downtrend in international rates. On MCX, gold slipped to 48493 per 10 gram, extending losses to the third day, while silver fell 0.8% to 71301 per kg. In the previous session, gold had dipped 0.8% while silver had declined 0.56%. MCX gold has support at 47,350 and resistance at 49200, say analysts.

Gold has failed to hold to gains after hitting 5-month highs of 49,700 earlier this month. In August last year, gold had touched a record high of 56,200.

In global markets, gold rates slipped 0.2% at $1,861 per ounce, amid a strengthening of US dollar. Silver also remained weak, dropping 0.7% to $27.64 per ounce. Investors remained cautious ahead of US Federal Reserve's two-day policy meeting that ends tomorrow. The dollar index hovered close to a one-month high versus its rivals, making gold more expensive for other currency holders.

The yields on 10-year US Treasuries were steady today after hitting three-month lows last week. This also damped the appeal of the non-interest-bearing precious metal.

Support for gold is seen at $1,842 and a drop below this level could extend the downward momentum, says Geojit. On the other hand, prices are required to break above $1,900 to reverse the momentum, it added.

Gold traders also await US monthly retail sales data due later in the day.

"Globally markets will be keenly watching the Fed meeting outcome on Wednesday, particularly clues regarding possible timing of tapering. US 10-year yield hovering around a 3-month low of 1.48% indicate that the market doesn't expect any major market-moving announcement from the Fed," said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Growing inflation concerns have benefitted gold as it is seen as a hedge against inflation but it could also force policymakers into an earlier tapering of stimulus, say analysts.

Market participants will be cautious of a hawkish surprise that could at least temporarily lift the US dollar, says Sriram Iyer, Senior Research Analyst at Reliance Securities.

Technically, for silver, "the inability to cross the immediate upside obstacle of $28.50, there are chances of selling pressure to continue towards $26.80 initially. Break of which the momentum may extend in near future. Rallies above $30 would call for sharp recovery pullbacks later," says Geojit.

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