Gold rate today: Yellow metal declines, silver slips below Rs 61,000
05 Oct 2021
NEW DELHI: Gold prices eased on Tuesday as the dollar rose but kept the bullion close to a week’s high. Rising energy prices may dampen economic activities and dent appetite for riskier assets.
Gold futures on MCX eased 0.18 per cent, or Rs 83, to Rs 46,804 per 10 gram. Silver futures were also down by 0.46 per cent, or Rs 279, to Rs 60,674 per kg.
The yellow metal has kept a firm trading range despite a strong dollar over inflation worries and rising tensions between China and Taiwan. The rising energy cost across the globe and power shortage may support gold prices on an inflation boom.
Reduced stimulus and interest rate hikes lift bond yields, weighing on gold as it translates into increased opportunity cost of holding non-interest-bearing bullion.
Ravi Singh, Vice President & Head of Research, ShareIndia, said gold traded higher after one of the government sources said India’s gold imports in September soared 658 per cent from last year’s lower base.
“A correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festive season,” he added.
In the spot market, highest purity gold was sold at Rs 46, 394 per 10 gram while silver was priced at Rs 59,997 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has remained flat in the last week, whereas silver is trading below Rs 60,000 during the period under review.
Sandeep Matta, Founder, TRADEIT Investment Advisor, said, “The precious metal jumped in yesterday’s trade after the OPEC+ mentioned to increase oil production only gradually ignoring the calls from US and India to boost oil output as the world economy recovers.”
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,750 and resistance at $1,775 per ounce. MCX Gold December support lies at Rs 46,500 and resistance at Rs 47,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold fell 0.4% to $1,761.69 per ounce by 0254 GMT, after hitting $1,770.41 on Monday, its highest since Sept 23. US gold futures were 0.3% lower at $1,762.30.
Spot silver fell 0.8% to $22.47 per ounce, platinum shed 0.6% to $960.89, while palladium was little changed at $1,905.18.