Gold rates today struggle below key level, silver rates flat
Premium- Gold traders will be awaiting comments from Federal Reserve Chair Jerome Powell during his testimony before Congress.
Gold and silver rates remained flat today in Indian markets amid weak global cues. On MCX, gold struggled below ₹48,000 per 10 gram while silver rates were flat at ₹69,103 per kg.
In global markets, gold remained steady today, supported by struggling equity markets and rising coronavirus cases across the world. But a stronger US dollar weighed on the precious metal. Spot gold was flat at $1,806.07 per ounce. The dollar index surged overnight after data showed U.S. consumer prices last month rose by the most in 13 years.
Now, gold traders will be awaiting comments from Federal Reserve Chair Jerome Powell during his testimony before Congress. A stronger dollar makes gold more expensive for other currency holders.
In the past, Jerome Powell has reiterated that he thinks higher inflation will be transitory as covid-impacted supply chains start to normalize.
Meanwhile, the fast-spreading Delta variant is forcing more countries around Europe to re-impose restrictions that could cast a pall over the region's economic recovery prospects.
Among other precious metals, silver was flat at $25.97 while platinum edged up to $2,830.14.
"As long as gold holds the support of $1788, choppy trading with recovery upticks are expected the day. Anyhow, a close above $1824 is required to continue the momentum. An unexpected drop below $1785 will continue selling pressure," says domestic brokerage Geojit.
MCX gold has support at ₹47,030 while faces resistance at ₹49,300, the brokerage said.
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On silver, Geojit says, 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 ₹71400 and support at ₹67,800, the brokerage said.
"Consumer demand is also weak as is evident from lower premiums in physical market. Gold has rallied sharply after taking support near $1750/ounce level. However, gold is still struggling to build momentum above $1800/ounce level as market players continue to assess economic numbers and central bank comments to gauge Fed’s monetary policy. We may see choppiness continuing however US dollar may remain supported by diverging monetary policy stance of Fed and other major central banks and this may keep pressure on gold prices," Kotak Securities said in ano
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