Gold prices today fall for second time in 3 days, silver rates drop
Premium- Gold rates in India are still higher so far this month
- The latest variant of the virus has created uncertainties and this has helped support gold at lower levels
Gold prices in India fell for the second time in three days amid weak global cues. On MCX, gold futures were down 0.46% to ₹47,702 per 10 gram while silver rates declined 0.4% to ₹69,014. Despite the recent decline, gold rates in India remain about ₹1,200 per gram higher so far this month.
In global markets, gold eased today as a rally in equity markets dimmed the safe-haven metal's appeal. A slightly stronger dollar also hurt the precious metal. Spot gold fell 0.2% to $1,803.56 per ounce.
Traders await US inflation data and Federal Reserve Chairman Jerome Powell's testimony due later this week. A surprise hawkish tilt by the Fed had pushed gold down 6% in June.
Asian equity markets were higher today, following a record finish on Wall Street. Analysts however say that gold's losses were capped due to concerns over the highly contagious Delta variant of the coronavirus that could hamper the pace of global economic recovery.
Among other precious metals, silver fell 0.2% to $26.03 per ounce.
"The latest variant of the virus has created uncertainties, rise in the number of cases. Moving forward the ability to control the virus by large countries, the pace of vaccination, global economic recovery, and the rising inflation will guide gold prices," said Nish Bhatt, Founder & CEO, Millwood Kane International - an Investment consulting firm.
Meanwhile, in India, the fourth tranche of Sovereign Gold Bond Scheme 2021-22 opened for subscription for five days from today. The issue price has been fixed at ₹4,807 per gram of gold.
The government is providing a discount of ₹50 per gram to those investors applying online and the payment against the application is made through digital mode.
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A total of ₹25,702 crore has been raised through the SGB Scheme till end-March 2021 since its inception. (With Agency Inputs)
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