Gold prices today fall to near lowest in 3 weeks, down ₹9000 from record highs1 min read . Updated: 09 Sep 2021, 01:32 PM IST
- Gold rate today were down about 0.25% amid weak global cues and stronger US dollar
Gold and silver prices today fell today in Indian markets amid weak global cues. But a weaker rupee capped losses. On MCX, gold futures were down near three-week low of ₹46,925 per 10 gram while silver fell 0.5% to ₹63,877 per kg. The Indian rupee today fell sharply against the US dollar to 73.85, weighed down by a broadly stronger US dollar. Gold prices in India include 10.75% import duty and 3% GST.
In global markets, gold fell to near two-week lows of 1,787.81 per ounce as stronger US dollar hurt the safe-haven appeal of gold. Analysts say that caution over pace of the global recovery bolstered the appeal of US dollar. On the other hand, gold is seen as a hedge against higher inflation that could follow stimulus measures.
For gold, “support of $1770 if hold expect recovery upticks. Else, there are chances of corrective selling pressure for the day," domestic brokerage Geojit said in a note.
Gold traders will be eyeing European Central Bank's policy decision due later today. Among other precious metals, silver fell 0.1% to $23.94 per ounce, while palladium dropped 0.4% to $2,243.18.
For silver, “a turn higher is possible if prices stay above $23.70. A direct drop below the same is a sign of weakness," Geojit said.
Meanwhile, a top Fed official said at a virtual meet that he would be advocating to announce a plan to for tapering bond purchases at the September meeting of the US central bank.
However, a separate Fed survey that added to signs that U.S. economic growth is moderating due to the spread of the delta coronavirus strain.
In a recent note, Axis Securities said, “Gold prices continue to face challenges with further strengthening of the dollar. Rising inflation expectation, improving economic outlook with a pick-up in the vaccination drive for the second half of 2021, and view on central banks tapering are the headwinds in the near term limiting the gold prices."
“However, gold will continue to be a preferred asset class till the time the uncertainties over the economic recovery fades off and will continue to attract investments as a proven hedge against other asset classes. We continue our neutral stance on gold and recommend a 'Buy-on-Dips’ strategy," the brokerage added.
(With Agency Inputs)
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