1 min read.Updated: 06 Sep 2021, 11:26 AM ISTLivemint
Gold price had inched closer to one-month high in the previous session while silver had jumped ₹1,900 per kg
Gold prices in India today edged lower after strong gains the previous session while silver traded flat. On MCX, gold futures were down 0.15% to ₹47,451 per 10 gram after surging to near one-month high in the previous session. Silver futures were flat at ₹65,261 per kg. In the previous session, gold had surged ₹500 per 10 gram while silver had jumped ₹1,900 per kg, in line with firming global rates after disappointing US jobs data.
In global markets, gold rate today was steady at near two-month high after a disappointing U.S. jobs data signalled that the Federal Reserve could push back the timeline for tapering stimulus measures. The spot price of bullion hovered near $1,826.65 per ounce while silver also remained steady at $24.69 per ounce.
For gold, “breaking $1835 is needed to continue further rallies for the day. Else, there are chances of corrective selling pressure," says domestic brokerage Geojit in a note.
“Recovery upticks in silver may continue while prices stay above $23.70. A direct drop below the same is a sign of weakness," the brokerage added.
After the release of US jobs data, analysts say that the Federal Reserve could push back the timeline for tapering stimulus measures. Gold is considered a hedge against inflation and currency debasement, caused by massive amounts of stimulus measures.
A stronger US dollar weighed on gold today. The dollar index was up 0.2% to 92.207 after falling to near one-month low on Friday.
Data released on Friday showed that US nonfarm payrolls increased by 235,000 jobs in August, much below economists' expectations of 728,000, amid a resurgence in COVID-19 infections.
Fed Chair Jerome Powell at the Jackson Hole symposium last month had hinted that reaching full employment was a pre-requisite for the central bank to start paring back its asset purchases. The stimulus is seen as a key pillar of the economic and market surge for more than a year. Equity markets across Asia were mostly higher today after a big miss on US jobs creation last month.
Gold imports into India nearly doubled last month from a year ago to their highest level in five months on an improvement in demand and as a correction in prices prompted jewellers to ramp up purchases for the festive season, Reuters reported, citing sources.
(With Agency Inputs)
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!