Gold prices today suffer third fall in four days, silver rates drop

Gold prices in India were under pressure today amid a drop in global rates. On MCX, gold futures were down 0.4% to ₹48358 per 10 gram in third fall in four days. Silver futures were down 0.8% to ₹71,748 per kg.

Gold prices today suffer third fall in four days

Despite the recent fall, gold is near four-month highs amid rising inflation expectations and concerns over the resurgence of coronavirus cases in many countries. Analysts also say that the extreme volatility in cryptocurrencies this week has also supported gold at lower levels.

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In international markets, gold rates edged lower amid a rally in equity markets but a weaker dollar capped losses. Gold was also supported on the downside by growing inflationary pressure. Spot gold was down 0.2% at $1,872.21 per ounce but the precious metal was on track for over 1.5% gain this week. Among other precious metals, silver eased 0.1% to $27.72, while platinum edged 0.4% higher to $1,200.57.

  • A rebound in global equity markets put pressure on gold prices
  • However, a weaker dollar, growing inflationary expectations and volatility in cryptocurrencies supported gold at lower levels

The dollar index was down 0.03% to 89.770 against rivals. A weaker greenback makes gold more appealing for other currency holders. An overnight dip in benchmark 10-year US Treasury yields also supported gold. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

Technically, international gold is trading with marginal sideways bias, says CapitalVia Investment Advisor. It was unable to sustain above $1880 while MCX gold has support around ₹48,300, it added.

Asian equity markets were mostly higher today after a rebound in US stock markets following strong US jobs data. Data released on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week.

“Also weighing on price are concerns about consumer demand amid tightening virus related restrictions. Also weighing on gold price is improving virus situation in US and Europe which has led to easing of virus related restrictions. Gold rallied sharply in last few days however with lack of any fresh positive trigger from FOMC minutes, it is likely to witness some profit taking,” Kotak Securities said.

Gold-backed exchange-traded funds also attracted inflows. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 1,037.09 tonnes on Thursday from 1,031.27 tonnes on Wednesday.

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(With Agency Inputs)

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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