Gold prices today fall again, down ₹11,500 from record highs, silver rises - Kashmir Student Alerts

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Monday, 8 March 2021

Gold prices today fall again, down ₹11,500 from record highs, silver rises

Gold prices today fall again, down ₹11,500 from record highs, silver rises

Gold prices struggled in Indian markets today while silver rates surged. On MCX, gold futures were 0.07% lower at ₹44653 per 10 gram while silver futures rose 1.3% to ₹66,465 per kg. Gold prices have fallen sharply this year, hurt by optimism over a robust economic recovery and faster-than-anticipated rise in bond yields. Gold prices in India are down over ₹5,000 from the start of this year and as compared to August highs of ₹56,200, the precious metal is off about ₹11,500.

In global markets, gold rates today rose 0.5% to $1,708.51 an ounce after hitting a nine-month low in the previous session. The passage of the US stimulus package bill in Senate boosted the precious metal's appeal as a hedge against inflation. But a stronger US dollar and rising bond yields capped gold's rise.

Among other precious metals, silver surged to $25.76 an ounce while platinum gained 1.1% to $1,142.60.

"Momentum likely to continue to be on the weaker side as long as prices stay below $1760. MCX gold has support at ₹43450 while faces resistance at ₹45,200," Geojit said.
On silver the brokerage said: "Expect a choppy with negative bias trading initially, but a direct turn above $26.50 likely for continuation of upticks. A direct break of $23.40 is required to extend the momentum. MCX gold has support at ₹63,800 and resistance at ₹68,200, the brokerage said.
On gold traders' watch will be European Central Bank's monetary policy meeting and briefing by President Christine Lagarde, due on Thursday.
The US Senate on Saturday passed President Joe Biden's $1.9 trillion COVID-19 relief plan, with the final bill including $400 billion in one-time payments of $1,400 to many Americans. The US spending plan moves to the House after the Senate passed the legislation.

ETF interest however remained weak. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust fell to a 10-month low on Friday.

"Gold may continue to sway reflecting the trend in US dollar. However, the general bias may remain on the downside unless US bond yields correct sharply," Kotak Securities said in a recent note. Also, weighing on gold price is weaker investor interest as is evident from continuing ETF outflows, the brokerage said.
However, at the lower levels, gold is supported by loose monetary policy stance of major central banks, surge in coronavirus cases in some parts of the world, inflation concerns and mixed economic data from major economies, Kotak said. Also supporting gold is increased geopolitical tensions as Yemen’s Houthi rebels said they struck a Saudi oil facility.

(With Agency Inputs)