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Home >Markets >Commodities >Gold prices today struggle a day after big gain, silver back at 70,000 levels

Gold prices today struggled in Indian markets after a sharp surge in the previous week. On MCX, gold futures were flat at 46,947 after surging 700 in the previous session. Silver futures added 0.24% to 70,598 per kg, extending the previous session's 1,500 gain. After a over 2% drop last week, gold prices has rebounded this week as traders refocus on rising inflation expectations and the potentially massive economic stimulus in the US.

In global markets, gold rates extended gains today after a surge in the previous session as benchmark US Treasury yields retreated. Spot gold rose 0.1% to $1,809.57 per ounce after gaining 1.5% in the previous session. A flat US dollar also supported the gains. Higher yields increase the opportunity cost of holding bullion.

"Upticks in gold may continue while it hold the stiff support of $1760. Anyhow, major resistance is placed at $1870. An unexpected drop below $1,755 would be an early signal of major selling pressure," domestic brokerage Geojit said in a note.

Benchmark US Treasury yields today eased from a one-year peak, hit on Monday.

Meanwhile, holdings in gold-backed exchange-traded funds have continue to see steady outflows. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.1% to 1,115.4 tonnes on Monday.

"Gold continues to follow its overseas sentiment but weak prices likely to attract more physical buyers in the domestic platform. more fiscal stimulus hopes and chances of physical demand recovery may limit major downside in the metal. Gold-backed ETFs physical holdings poised for a fifth monthly outflows by the end of February. The physical holdings of gold backed ETFs with SPDR gold trust declined by 0.91 percent in January and declined 1.17% so far in February, totalling around 36.86 million troy ounces by the week ended February 19," Geojit said in a note.

Among other precious metals, silver eased 0.4% to $28.04 an ounce. Platinum shed 0.4% to $1,267.46, while palladium climbed 0.3% to $2,401.52.

Meanwhile, the US House Budget Committee advanced President Joe Biden’s $1.9 trillion pandemic-relief legislation, setting it up to pass the lower chamber by the end of this week.

Investors now await the testimony of US Federal Reserve Chairman Jerome Powell on the Semiannual Monetary Report to Congress, due later today.

Powell’s semi-annual report at the Senate Banking Committee Tuesday and the next day at the House Financial Services panel will be monitored for further policy guidance and his assessment of the recovery. (With Agency Inputs)

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