Gold rate today: Yellow metal slips below Rs 48,000; silver too declines
29 Oct 2021
NEW DELHI: Gold prices declined in the domestic markets, bucking the global trend. At the international level, the yellow metal was set to mark its straight third weekly gains.
Ease in US bond yields and a tepid dollar aided bullion’s safe-haven appeal. A weaker greenback makes gold more attractive to buyers holding other currencies.
Meanwhile, back home, gold futures on MCX shed 0.24 per cent or Rs 117 to Rs 47,844 per 10 grams. Silver futures were down 0.44 per cent or Rs 283 at Rs 64,648 per kg.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion. Amid this backdrop, market players are eyeing the upcoming FOMC meeting next week.
Ravi Singh, Vice President & Head of Research, Share India said MCX Gold is likely to remain rangebound with a bullish bias.
India’s gold demand has seen a 47 per cent year-on-year jump in the July-September quarter to 139.1 tonnes, following a rebound in economic activity and recovering consumer demand, the World Gold Council said in a report.
According to the World Gold Council, gold demand in India is bouncing back to pre-COVID levels and going forward the outlook looks bullish.
In the spot market, the highest purity gold was sold at Rs 48,065 per 10 grams while silver was priced at Rs 64,699 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has remained almost flat in the last two weeks, whereas silver has jumped about Rs 2,000 per kg during the period under review.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,785 and resistance at $1,810 per ounce. MCX Gold December support lies at Rs 47,700 and resistance at Rs 48,200 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities said.
Spot gold was steady at $1,797.82 per ounce as of 0100 GMT, but has gained 0.3 per cent so far this week. US gold futures dropped 0.2 per cent to $1,799.40 per ounce.
Spot silver fell 0.3 per cent to $24.02 per ounce and was set for its worst week since mid-September. Platinum dipped 0.1 per cent to $1,018.24 per ounce, while palladium rose 0.2 per cent to $1,992.17.