Gold prices today fall for second day, down about ₹10,000 from record highs

Gold rates today: On MCX, prices edged lower to ₹46,865 per 10 gramPremium
Gold rates today: On MCX, prices edged lower to ₹46,865 per 10 gram
 2 min read . Updated: 25 Jun 2021, 11:36 AM IST Edited By Surajit Dasgupta

Gold rates continued to struggle in Indian markets, with futures on MCX edging lower for second day to ₹46,865 per 10 gram. Silver edged 0.17% higher to ₹67845 per kg. MCX gold faces resistance at ₹47,200 while has support at ₹46,360, say analysts. Gold may continue to trade in a range amid choppiness in equity market and US dollar as market players try to assess Fed’s stance, says Kotak Securities. However, the general bias is still weak as diverging monetary policy outlook may keep US dollar supported, it added.

In global markets, gold was steady at $1,778.48 per ounce and is on track for about 0.8% gain. The yellow metal had plunged 6% last week after Fed's hawkish turn. The retreat in US dollar has supported gold. The US index edged lower to 91.787, making the precious metal cheaper for holders of other currencies.

In India, gold rates had edged closer to ₹50,000 level earlier this month before correcting, in tandem with global rates. In August last year, gold had hit a record high of ₹56,200.

Gold traders remained cautious ahead of US producer price data due later in the day that would offer further clues on rising inflation.

The US Fed has given mixed signals about its stance. Two Fed officials warned on Thursday that inflation could rise more than policymakers' expectation in the near term. However, earlier this week, Fed chief Jerome Powell in a congressional testimony said that inflation would not be the only determinant of interest rate decisions, calming investors worried about policy tightening after the Fed's hawkish turn.

"Gold is seen as a hedge against higher inflation. "Prevailing choppy with negative bias trading likely to continue for gold as long as $1800 caps the upside. Meanwhile, a direct drop blow $1755 would be an early signal of sharp liquidation pressure," domestic brokerage Geojit said.

Among other precious metals, silver was up 0.5% at $26.06 per ounce. (With Agency Inputs)

MINT PREMIUM See All
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close