1 min read.Updated: 23 Jul 2021, 12:54 PM ISTLivemint
Analysts expect gold to remain range bound in near term
Persisting virus risks, inflation concerns and mixed economic numbers may keep gold supported at lower levels
Gold rates slipped today in Indian markets, continuing their downward trajectory. On MCX, gold futures fell about 0.25% to ₹47,510 while silver futures edged 0.22% higher at ₹67,520 per kg. Gold rates are down about ₹1,000 in five sessions amid weak global trend. MCX gold has support at ₹46,850 and resistance at ₹48,400, say analysts.
In global markets, gold rates edged lower today amid a stronger US dollar. Spot gold was down 0.2% at $1,803.33 per ounce and was set for first weekly decline in five. The precious metal is down about 0.4% so far this week. The US dollar index today hovered near 3-month high against its rivals, making gold more expensive for holder of other currencies.
"If unable to break the support of $1780, intraday bias slightly on the positive side. However, the $1835 resistance mark needs to be cleared for continuation of the momentum. A direct drop below $1780 is an early signal of major liquidation pressure in the counter," says domestic brokerage Geojit.
Analysts expect gold to remain range bound in near term, with inflation being a key driver of prices. Gold traders will be closely watching the outcome of Fed's policy meeting due next week.
On Thursday, the European Central Bank pledged to keep interest rates at record lows for even longer and warned of Delta variant risks to the European economy.
"Gold may witness choppy trade reflecting the volatility in larger financial markets however price has managed to hold near $1800/ounce level which shows some buying interest at lower levels. Persisting virus risks, inflation concerns and mixed economic numbers may keep gold prices supported," says Kotak Securities in a note.
Among other precious metals, silver slipped 0.5% to $25.34 per ounce while platinum was flat at $1,092.64. (With Agency Inputs)