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Home / Markets / Commodities /  Gold prices today struggle for 6th day in a row, down 7000 from record high

Gold prices in India continued to struggle for the sixth day in a row, moving in a very narrow range. On MCX, gold futures were up 0.15% to 49,275 per 10 gram while silver futures rose 0.5% to 72,357 per kg. In international markets, gold prices held steady near $1,900 an ounce, supported by a weaker dollar and US bond yields. Gold has struggled in a narrow range after hitting a 5-month high of 49,750 last week. In August last year, the precious metal had hit a record high of 56,200.

MCX gold faces key resistance at 49880 while major support is placed at 48400, say analysts.

Investors shrugged off data that showed the US inflation jumping 5% from a year ago, the biggest annual gain since August 2008. They hope that the rise in US inflation is likely to be transitory and Fed is likely to keep its dovish stance intact.

Among other precious metals, silver rose 0.5% to $28.10 per ounce, while platinum was steady at $1,151.47.

"If gold breaks the stiff resistance of $1925 it would extend the positive momentum. An unexpected drop below $1845 is likely to negate further bullish expectations and take prices lower," says Hareesh V, Research Head Commodities at Geojit Financial Services.

Benchmark US bond yields eased, boosting the appeal of non-interest-bearing gold. Gold traders will now be looking forward to Federal Reserve’s meeting next week for guidance on its monetary policy path.

On Thursday, the European Central Bank raised its growth and inflation projections but pledged a steady flow of stimulus.

"Gold has rescaled $1900/ounce after a brief correction indicating underlying strength. However, we are set to see choppy trade as market players continue to assess inflation situation ahead of Fed’s meeting next week. Among other precious metals, silver was steady at $27.96 per ounce while platinum edged 0.1% lower to $1,150," Kotak Securities said in a note.

On the other hand, analysts say that weighing on gold price is weaker consumer demand in India but the situation may improve with some easing of virus related restrictions. Also weighing on gold is US-China efforts to improve relations, they say.

"Trend in US dollar, bond yields and equity marker may continue to affect gold rates and silver and focus will be on economic data from major economies, central bank comments and development relating to virus situation," the brokerage added. (With Agency Inputs)

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