Gold prices today fall, a day after surging to one-month high, silver rates drop - Kashmir Student Alerts

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Thursday, 8 April 2021

Gold prices today fall, a day after surging to one-month high, silver rates drop

Gold prices today fall, a day after surging to one-month high, silver rates drop


Gold and silver prices today edged lower in Indian markets, after a sharp upmove in the previous session. On MCX, gold edged 0.1% lower to ₹46,320 after hitting a one-month high of ₹46,400 in the previous session. Silver futures dropped 0.34% to ₹66,405 per kg. In the previous session, gold rose 0.9% while silver jumped 1.1%, tracking a sharp fall in the rupee.
MCX gold faces resistance at RS 47,080 while has support at ₹44,600, says domestic brokerage Geojit.

The rupee on Wednesday recorded its biggest single-day fall in nearly two years after RBI announced plan to purchase ₹1 lakh crore-worth government bonds in the current quarter. India imports most of its gold requirement.
Gold rates have rebounded in India from one-year lows of ₹44,100, hit last week. A weaker US dollar and some softening in US bond yields have led to a mild recovery in global rates.
In global markets, gold rates were steady today, tracking movements in the dollar and bond yields. The precious metal was flat at $1,737.02 an ounce, after a 0.3% drop on Wednesday. The precious metal was supported by a weak US dollar, which traded near more than two-week lows versus major peers.
On the upside, gold has immediate resistance at $1760 but stiff support is placed at $1680, says Geojit.
ETFs outflows continued. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.35 tonnes to 1,028.69 tonnes on Wednesday from 1,029.04 tonnes on Tuesday.
Among other precious metals, silver fell 0.3% to $25.03 while platinum rose 0.1% to $1,226.16.

In global markets, gold is down more than 8% this year after seeing a strong rally last year. Rising US bond yields and optimism over the global recovery have dampened the safe-haven appeal of gold, which doesn’t earn interest. Gold has also been hit by waning investor interest. Holdings in gold ETTs have continued to decline.
Most Asian equity markets were higher today after the US Federal Reserve's latest meeting minutes indicated continued policy support. They also indicated any spikes in inflation -- which could be a driver for bullion -- are likely to be transitory. Meanwhile, gold traders will look for more clues from Fed Chair Jerome Powell, who is due to take part in a panel about the global economy later today. (With Agency Inputs)