Gold prices in India dipped today after the recent surge pushed rates to over 3-month highs. On MCX, gold futures slipped 0.08% to ₹48,437 per 10 gram after jumping ₹1,100 in previous two sessions.
Silver futures rose 0.9% to ₹73,960 per kg. In the previous session, gold had gained ₹800 or 1.6% while silver had surged ₹2300 or 3.2%. MCX Gold has support at ₹46,360 and resistance at ₹49,400, say analysts.
In international markets, gold prices extended gains to rise to over 3-month highs amid a weaker dollar. Spot gold was up 0.2% at $1,868.89 per ounce. A weaker greenback makes gold more appealing for other currency holders. Gold was also boosted by growing inflationary pressure which lifted the precious metal’s appeal as an inflation hedge.
Gold Prices Today Reports
“Buying momentum in gold could continue towards the immediate resistance of $1880 which if cleared it may extend the trend to $1928 or even more. Prices required to break the support of $1810 to negate the bullish expectations and take prices lower,”.
Recent inflows into bullion-backed exchange-traded funds or gold ETFs has signalled a boost to investor sentiment. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.7% to 1,035.93 tonnes on Monday from 1,028.36 tonnes in the prior session.
Among other precious metals, silver rose 0.2% to $28.23 whole platinum edged 0.2% higher to $1,242.27.
“While silver prices stay above $28.20 there are chances of continuation of upticks towards $30 initially. Break above the same is an early signal of major bullish trend. Further weakness is seen only if prices close below $25,” says Geojit. MCX silver has resistance at ₹74800 and support at ₹70,150.
On Wednesday, the minutes of US Fed’s last meeting will be released. Gold traders will be watching for clues on the US central bank’s monetary policy. Expectations for further increases in consumer prices could start to bolster demand for gold as a hedge, say analysts.
A flareup in coronavirus cases in many parts of Asia has concerns over the pace of a global recovery, also boosting gold’s price. The World Economic Forum has canceled the annual meeting it was planning to hold this August in Singapore.
In India, the Sovereign Gold Bond Scheme 2021-22 Series-I or first tranche of gold bonds of this fiscal has opened for subscription. The government has fixed the issue price at ₹4,777 per gram of gold while investors who apply online and make the payment online will get a discount of ₹50 per gram.
(With Agency Inputs)