Gold rate today: Yellow metal slips; silver breaches Rs 60,000 mark

Gold rate today: Yellow metal slips; silver breaches Rs 60,000 mark

NEW DELHI: Gold prices declined on Monday, hitting multi-week lows. Markets are closely watching the US Federal Reserve meeting this week for clues on when the central bank will start tapering its crisis-era stimulus measures.

Gold futures on MCX were marginally down 0.09 per cent, or Rs 41, at Rs 45,945 per 10 gram. Similarly, silver futures tanked 0.98 per cent, or Rs 590, at Rs 59,402 per kg.

Gold prices traded under pressure on stronger dollar and speculation over asset tapering by Fed. The rise in US bond yields also added pressure.

The dollar index hit a near one-month high, hurting gold’s appeal for holders of other currencies. Higher interest rates raise the opportunity cost of holding non-interest bearing gold.

Sandeep Matta, Founder, TRADEIT Investment Advisor, said, “Gold is struggling to find new buyers as market participants are expecting less dovish commentary from Fed monetary policy this week.”

A pullback in domestic prices failed to revive physical gold demand in India last week with jewellers banking on the upcoming wedding and festive season.

In the spot market, highest purity gold was sold at Rs 46,310 per 10 gram while silver was priced at Rs 61,131 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.

The spot price of the yellow metal have declined by about Rs 1,000 per 10 gram in the last seven trading sessions, whereas silver has shed more than Rs 3,300 a kg in the same period, thanks to tepid buying action.

Trading strategy
“Gold prices may trade sideways to down for the day on mixed global cues. COMEX Spot gold support lies at $1,730 and resistance at $1,760 per ounce while MCX Gold October support lies at Rs 45,800 and resistance at Rs 46,300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold fell 0.3% to $1,748.69 per ounce by 0312 GMT. Prices had touched $1,741.86 earlier in the session, their lowest level since Aug. 12. US gold futures fell 0.1% to $1,749.00.

Silver fell 1.2% to $22.13 per ounce, after earlier hitting its lowest level since November 2020 at $22.01. Platinum slumped to a ten-month trough of $907.50 and was last down 2.8% at $914.54. Palladium slipped 3.5% to $1,945.17.

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