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Home >Markets >Commodities >Gold prices today struggle after sharp fall, sliver rates dip

Gold and silver prices today were flat after a sharp fall in the previous session. MCX gold futures prices were slightly higher at 46,980 per 10 gram while silver futures dipped to 64,658.00 per kg. In the previous session, gold and silver had slumped about 1% each, tracking weak global cues. Stronger US dollar and an uptick in US bond yields weighed on gold. 

In global markets, gold was below the important level of $1,800 an ounce, as a stronger US dollar and higher bond yields hurt the precious metal's safe-haven appeal. Spot gold was flat at $1,796.03 per ounce, after falling to $1,791.90 in the previous session. 

There are chances of corrective selling pressure in gold unless $1,835 is taken out, says domestic brokerage Geojit. 

The US dollar index inched higher to one-week high of 92.543 while benchmark 10-year Treasury note rose as high as 1.385% on Tuesday. Higher yields increase the opportunity cost of holding non-interest bearing bullion.

Among other precious metals, silver rose 0.1% to $24.32 per ounce while platinum edged 0.3% higher to $1,001.36.

Till silver stays above $23.70, there are chances of further pullback but a direct drop below the same is a sign of weakness, Geojit said. 

Also, weighing on gold is weaker investor interest in gold amid persisting strength in equity markets, say analysts. Gold holdings with SPDR ETF, the world's biggest gold exchange fund, fell to April 2020 low of 998.52 tonnes last week, according to Kotak Securities. 

Gold may witness choppy trade as US dollar may get affected by outlook for monetary policy of Fed and other central banks but increasing global uncertainty may continue to keep prices supported, the brokerage said. 

While central banks remain in focus, gold remains supported by uneven global economic recovery, persisting virus concerns, say analysts.

Traders will be watching the outcome of ECB's meeting due this week. The European Central Bank is due to hold its monetary policy meeting this week and there is increasing chatter that the central bank may start bond tapering soon given the rise in inflationary pressure. 

(With Agency Inputs)

 

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