Gold prices fall today, down sharply over past one week; silver rates drop
Premium- Gold prices in India had hit a month-month high last week
- Since then prices have corrected
Gold and silver prices dipped in India today, tracking weak global cues. On MCX, gold futures were down 0.2% to ₹49,020 per 10 gram while silver rates fell 0.5% to ₹71,507 per kg. Gold had ended flat in the previous session while silver had jumped 0.9%. MCX gold has support at ₹48020 while silver at ₹68200, say analysts.
Gold had jumped to a 5-month high of ₹49,750 last week and since then has struggled amid weak global cues.
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In international markets, gold rates were down moderately as investors remained cautious ahead of US inflation data. The European Central Bank policy meeting is also scheduled later in the day. Spot gold was down 0.2% at $1,885.51 per ounce. Among other precious metals, silver dipped 0.1% to $27.73 per ounce while platinum edged 0.2% lower to $1,147.56.
Gold was weighed down by a stronger US dollar, making gold less appealing for other currency holders. The dollar index edged up slightly to trade at 90.168 against its rivals.
On the other hand, gold was supported by dip in US benchmark Treasury yields that slipped below 1.50% in over a month. Lower yields reduce the opportunity cost of holding non-interest bearing bullion.
Technically, international gold is trading with marginal sideways and negative bias below $1900 levels and may decline and has support around $1885-$1880 levels, say analysts at CapitalVia Investment Advisor.
Major weakness for gold is seen if prices drop to $1840 levels, says analysts.
Analysts expect the European Central Bank to maintain its loose monetary policy stance.
Meanwhile, the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, rose 0.6% to 1,043.16 tonnes on Wednesday from 1,037.33 tonnes on Tuesday.
In India, gold ETFs witnessed net inflow of ₹288 crore last month, compared to ₹680 crore in April.
(With Agency Inputs)
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