Gold and silver prices in India fell today following weak global signals. On the MCX, gold futures are down 0.2% to ₹49,020 for 10 grams, while silver prices fell 0.5% to ₹71.507 per kg. Gold in the previous session closed unchanged, while silver jumped 0.9%. MCX gold has support on ₹48020 while silver is on ₹68,200, analysts say.
Gold Jumps To 5-Month High ₹49,750 last week and has struggled since then amid weak global signals.
On international markets, gold rates fell moderately as investors remained cautious in anticipation of US inflation data. A European Central Bank policy meeting is also scheduled for the same day. Spot gold fell 0.2% to $ 1,885.51 an ounce. Among other precious metals, silver fell 0.1% to $ 27.73 an ounce, while platinum fell 0.2% to $ 1,147.56.
Gold was impacted by the stronger US dollar, making gold less attractive to holders of other currencies. The dollar index rose slightly to 90.168 against its peers.
On the other hand, gold was supported by the fall in the yield of US Treasury bonds, which fell below 1.50% over the month. Lower profitability lowers the opportunity cost of owning interest-free bullion.
Technically, international gold is trading with margin sideways movement and negative offset below $ 1,900 levels and is likely to decline and has support around $ 1885-1880, analysts at CapitalVia Investment Advisor say.
According to analysts, a serious weakness in gold will be observed if prices fall to the level of $ 1,840.
Analysts expect the European Central Bank to maintain a loose monetary policy.
Meanwhile, holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, rose 0.6% to 1,043.16 tons on Wednesday from 1,037.33 tons on Tuesday.
India has a net inflow of gold ETFs ₹Rs 288 crore last month, up from ₹680 crores in April.
(With the participation of the agency)
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