Gold prices in India struggled today after the recent sharp fall. On MCX, gold futures were up 0.15% to 46,449 per 10 gram while silver futures were 0.3% higher at 62,047 per kg. Gold rates in India have fallen about 2,000 per 10 gram in about a month, tracking global weakness. After hitting a record high of 56,200 last year, gold has struggled this year.
In global markets, gold was flat and headed for a second consecutive weekly decline. Spot gold was unchanged at $1,752.78 per ounce. It is down 0.5% so far for the week. Weighing on gold, the dollar was steady near a four-month high against a basket of currencies. Among other precious metals, silver rose 0.2% to $23.19 per ounce while platinum fell 0.2% to $1,015.90.
Analysts say that the gold may hover in the range of $1,750- $1,800 in the short term. The rise in covid cases in many countries could force the central banks. to continue with the stimulus measures, thus providing a downside support to the precious metal, they added.
Broad outlook for gold continues to be choppy with negative as long as it stays below $1815. Anyhow, further major liquidation is seen only a close below $1680,” domestic brokerage Geojit said in a note.
Recent economic data releases in the US have showed signs of rising inflation pressures and a strengthening job market. A stronger dollar diminishes demand for bullion as an alternative asset.
Earlier this week in India, gold dropped to a four-month low of 45,800 per 10 gram amid a global selloff after a report showed the U.S. labor market recovering faster than expected. Gold is seen as a hedge against inflation, but a Fed rate hike will increase the opportunity cost of holding non-yielding bullion while boosting the dollar.
For silver, Geojit says, a break above $23.60 is required to lift prices higher. Else, there are chances of range bound trading with mild negative bias.”
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Gold rates in India have fallen about ₹2,000 per 10 gram in about a month
