Gold rates today fall sharply to near 11-month lows, silver rates plunge
Gold rates in India are down ₹12,000 per 10 gram from August highsWeighing on gold is general progress on vaccination front which has improved global growth outlook, say analysts
Gold and silver prices fell sharply today in Indian markets in tandem with a similar fall in global rates. On MCX, gold futures were down 1.2% to near 11-month low of ₹44365 per 10 gram while silver declined 1.6% to ₹66,430 per kg. In Thursday's truncated session, gold prices edged 0.11% higher while silver advanced 0.2%. MCX was closed for the morning session on Thursday due to a public holiday.
MCX gold has support at ₹43,450 and resistance at ₹45,420, says domestic brokerage Geojit.
In global markets, gold rates fell 1.2% to $1,700.80 per ounce after a rebound in U.S. Treasury yields and the dollar index. Higher bond yields increase the opportunity cost of holding non-interest paying gold.
"Gold prices continue to be on the bearish trap as long as it $1780 caps the upside. However, a direct drop below $1660 would trigger further liquidation pressure in the metal. Immediate upside turnaround point is seen at $1820," Geojit said in a note.
Among other precious metals, silver rates slipped 2.4% to $25.45 an ounce
"For silver, a direct break above $26.50 is required to continue recovery upticks. Else, prices could correct lower but breaking $23.40 would extend major bearish momentum," Geojit said.
MCX silver has resistance at ₹68,800 and support at ₹64,400, the brokerage said.
However, gold ETFs continued to see outflows, putting pressure on the precious metal. Holdings of SPDR Gold Trust, the the world's largest gold-backed exchange-traded fund, fell 0.5% to 1,055.27 tonnes on Thursday.
"Also weighing on gold is general progress on vaccination front which has improved growth outlook. Gold may continue to sway along with US dollar however a sharp rise is unlikely unless bond yields correct sharply or there are fresh positive triggers," Kotak Securities said in a recent note. In August last year, gold had hit a record high of ₹56,200 in Indian markets, triggered by safe-haven demand amid the pandemic.
On Thursday, the European Central Bank pledged to step up the pace of bond purchases to keep a lid on bond yields. (With Agency Inputs)
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