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Gold cheaper by Rs 2,100 per 10 gram so far this month

Gold cheaper by Rs 2,100 per 10 gram so far this month

12 Aug 2021

NEW DELHI: After a steep fall, gold prices were little changed on Thursday. The yellow metal held steady, trading mildy lower after an overnight gain.

Gold futures on MCX were down 0.14 per cent, or Rs 67, at Rs 46,321 per 10 gram. Silver futures shed 0.34 per cent, or Rs 216 lower, at Rs 62,555 per kg.

Data showed that US consumer price increases slowed in July, soothing concerns of an early tapering of economic support. The dollar index was flat after retreating from an over four-month high.

Gold prices traded steady on Thursday. The yellow metal witnessed recovery from the recent “flash crash” on softer dollar and fall in US treasury yields, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

“The dollar index declined for the first time in five days post US CPI data. The US 10 year treasury yields declined after rallying for one week boosting buying in gold,” he added.

Demand for physical gold in India has remained subdued. The minor premium for the precious metal has been completely erased recently.

In the spot market, highest purity gold was sold at Rs 46,328 per 10 gram while silver was priced at Rs 62,850 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.

Gold and silver today continued to struggle in the Indian market. Spot prices of the yellow metal have tanked over Rs 2,100 in August so far. Similarly, prices of silver have declined over Rs 5,200 during the ongoing month.

China’s tighter social restrictions to fight its latest COVID-19 outbreak, now in its fourth week and involving more than a dozen cities, are hitting the services sector, especially travel and hospitality.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1,735 and resistance at $1,770 per ounce. MCX Gold October support lies at Rs 46,000 and resistance at Rs 46,700 per 10 gram,” added Patel of HDFC Securities.

Global markets
Spot gold was little changed at $1,750.34 per ounce by 0104 GMT, having recorded its biggest one-day percentage gain since May 6 on Wednesday. US gold futures were flat at $1,753.40.

Silver fell 0.2% to $23.47 per ounce. Platinum was steady at $1,017.91 and palladium rose 0.1% to $2,638.14.