Gold prices today struggle, down ₹8,500 from record highs, silver rates rise
Premium- Gold rates in India have struggled to go past ₹48,000 level this month
- In June, gold had seen a sharp correction
Gold and silver rates edged higher in Indian markets today, tracking positive global cues. On MCX, gold futures were up 0.2% to ₹47,881 per 10 gram while silver rose 0.36% to ₹69625 per kg. After a sharp fall in June, gold has recovered this month but has struggled to go past ₹48,000 mark. Last year, gold had hit a record high of ₹56,200 per 10 gram in Indian markets.
In global markets, gold rates were flat today, supported by a weaker US dollar. Spot gold rose 0.1% to $1,807.22 per ounce after falling to one-week low of $1,790.49 in the previous session. A weaker dollar makes gold less expensive for other currency holders.
Traders remained cautious ahead of US inflation data that could offer clues about the likely timing of policy tightening by the Federal Reserve.
Among other precious metals, silver rose 0.3% to $26.24 per ounce while platinum eased 0.2% to $1,115.68.
“Gold prices are holding near $1800 mark amid the persisting concerns around COVID-19 and its variants," said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services.
Gold traders will keep a close eye on US consumer price index data and Fed chief Jerome Powell’s appearance before Congress later this week to get cues on policy tightening by the central bank, he said, adding broader range on COMEX could be between $1786- 1820 and on the domestic front prices could hover in the range of ₹47,550- 48,150.
On silver, domestic brokerage Geojit said, a tight trade inside $26.80-25.40 remain in cards and a break of any of the sides would suggest fresh direction to the commodity for the day. MCX silver has resistance at ₹71,400 and support at ₹67,800.
A strong rally in global equity markets has dampened the safe-haven status of gold. Asian stocks were mostly higher today after their US peers notched further all-time highs as investors awaited second-quarter earnings season. US Treasury yields also remained steady.
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