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Gold price today: Yellow metal slips below Rs 47,000, silver loses sheen

Gold price today: Yellow metal slips below Rs 47,000, silver loses sheen

24 Jun 2021

NEW DELHI: Gold prices edged lower on Thursday as a stronger dollar dented the yellow metal’s appeal. Investors are awaiting more US economic data due this week to gauge inflationary pressures. The safe heaven metal slipped in domestic markets.

According to two US Fed officials, inflation may remain elevated longer than expected. The central bank may prompt them to raise interest rates. Investor focus has now shifted to US producer price inflation data on Friday, apart from jobless claims on Thursday and consumer spending on Friday.

The dollar index held firm below an 11-week high against its rivals, making gold more expensive for holders of other currencies. Gold is seen as a hedge against inflation. A rate hike by the Fed will increase the opportunity cost of holding bullion and dull its appeal.

The demand for physical gold in the world’s second largest bullion market remains subdued even after lifting up the shutters. However, the purchases have increased of late, following the fall in rate, but a major slump in sales is foreseen by local dealers.

Gold futures on MCX were down 0.41 per cent or Rs 192 at Rs 46,880 per 10 grams. Silver futures shed 0.58 per cent or Rs 402 to Rs 68,585 per kg.

Trading Steady

“Gold prices traded steady with COMEX Spot gold prices were trading near $1776 per ounce in the morning trade. Gold prices are trading muted within a range of $20 on mixed global cues. The yellow metal earlier got support from FRD comments with no hurry in tapering stimulus,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

In the spot market, highest purity gold was sold at Rs 47,214 while silver was priced at Rs 67,991 on Wednesday, according to the Indian Bullion and Jewellers Association.

Trading strategy

“We expect gold prices to trade sideways to up with COMEX gold support at $1765 and resistance at $1790 per ounce. MCX Gold August support lies at Rs.46800 and resistance at Rs.47400 per 10 gram,” said Patel of HDFC Securities.

Global markets

Spot gold was down 0.1 per cent to $1,777.26 per ounce by 0116 GMT. US gold futures eased 0.2 per cent to $1,779.50 per ounce.

Silver was steady at $25.87 per ounce, palladium eased 0.1 per cent to $2,614.04. Platinum climbed 0.5 per cent to $1,089.