Home / Markets / Commodities /  Gold rates today fall for first time in 8 days, still down 7,000 from record highs
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Gold and silver rates today edged lower in Indian markets, tracking softness in global rates after their recent upsurge. On MCX, gold fell for the first time in eight days after the precious metal declined 0.15% to 49240 per 10 gram. Silver futures declined 0.3% to 66,931 per kg. Though gold rates in India have surged from 47,000 at the start of this month, they are still down 7,000 from record highs of last year. 

In global markets, gold eased today to $1,858.73 per ounce, slipping from a more than five-month peak hit in the previous session. Better-than-expected economic data from China and worries over possible central bank action amid inflation concerns made investors cautious.

Interest rate hikes tend to reduce non-interest bearing gold's appeal as it raises the metal's opportunity cost.

"Gold is struggling to build momentum as support from increased demand as an inflation hedge and choppiness inequities are countered by firmness in the US dollar index, fear of Fed’s monetary tightening, and weaker investor interest. Gold has stalled near $1870/oz level and unless there are fresh triggers, the price may remain choppy. Dips might attract buying," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Gold has rallied this month as inflation concerns fueled demand for the traditional haven. 

Among other precious metals, spot silver fell 1.3% to $24.97 per ounce while platinum fell 1.2% to $1,069.54.

According to domestic brokerage Geojit, “a break above $1870 will take gold prices further higher. Else, there are chances of corrective selling."

For silver, “while prices stay above $25 there are chances to continue rallies for the day. Immediate reversal point is seen at $23," the brokerage added. (With Agency Inputs)

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