Gold and silver prices fell today in Indian markets after a sharp rise in the previous session. On the MCX, gold fell 0.1% to ₹46 320 after reaching monthly high ₹46,400 in the previous session. Silver futures fell 0.34% to ₹66.405 per kg. In the previous session, gold was up 0.9% and silver 1.1%, following the sharp drop in the rupee.
MCX gold faces resistance at 47080 RS and support is at ₹44,600, according to local brokerage company Geojit.
On Wednesday, the rupee recorded its biggest one-day drop in nearly two years after the RBI announced plans to buy. ₹Government bonds worth Rs 1 crore this quarter. India imports most of the gold it needs.
Gold rates in India bounced off an annual low. ₹44,100, hit last week. The weakening of the US dollar and a slight decrease in the yield on US bonds led to a moderate recovery in world rates.
On world markets, gold rates remained stable today, tracking the movement of the dollar and bond yields. The precious metal was unchanged at $ 1,737.02 an ounce after falling 0.3% on Wednesday. The precious metal was supported by the weak US dollar, which traded near two-week lows compared to its major peers.
Gold, on the other hand, has immediate resistance at $ 1,760, but tough support is at $ 1,680, Geogit says.
The outflow of ETFs continued. Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, fell 0.35 tons to 1,028.69 tons on Wednesday from 1,029.04 tons on Tuesday.
Among other precious metals, silver fell 0.3% to $ 25.03, while platinum rose 0.1% to $ 1,226.16.
In global markets, gold has dropped more than 8% this year after strong gains last year. Rising US bond yields and optimism about the global economic recovery have weakened the attractiveness of gold, which does not pay interest. Gold was also hit by declining investor interest. Investments in gold ETTs continued to decline.
Most Asian stock markets rose today after the minutes of the last meeting of the US Federal Reserve System indicated continued support for the policy. They also pointed out that any spikes in inflation that could drive bullion are likely to be temporary. Meanwhile, gold traders will be looking for new clues from Fed Chairman Jerome Powell, who is due to take part in a panel on the global economy today. (With the participation of the agency)