Gold rates today fall for 5th day, silver rates drop
Premium- Higher equity markets and a stronger US dollar weighed on gold rates today
- Gold is down about ₹1,000 per 10 gram in five days
Gold prices remained weak for fifth day in a row as futures on MCX fell 0.2% to ₹47478 per 10 gram. Silver rates also skidded to ₹67101 per kg. Gold futures had dropped 0.66% in yesterday's truncated session on MCX while silver rose 0.83%. MCX gold has support at ₹46,850 and resistance at ₹48,400, say analysts. Trading on MCX was closed during the first half on Wednesday due to a public holiday.
In global markets, gold prices edged lower today as risk appetite returned in equities. A stronger US dollar also weighed on the precious metal. Spot gold was down 0.1% at $1,801.82 per ounce, after hitting a more than one-week low of $1,793.59 in the previous session. On the other hand, silver was steady at $25.23 per ounce.
Gold needs to clear the $1835 resistance mark for continuation of the momentum, say analysts at Geojit. A direct drop below $1780 is an early signal of major liquidation pressure in the counter.
"If silver holds the support of $24.20, there are chances of recovery upticks for the day. Else, expect continuation of weak momentum in the counter. Anyhow major rallies can be seen only a break above $26.80," says Geojit.
MCX silver has resistance at ₹70900 and support at ₹66,400, the brokerage says.
Asian equity markets were mostly higher today after a strong finish by Wall Street. Investors looked past concerns over Delta coronavirus variant and inflation as solid company earnings boosted Wall Street.
Continuing its rebound, US benchmark bond yields headed higher and weighed on gold.
Gold traders will be watching as later today European Central Bank officials will outline how their new inflation goal affects their intentions for future monetary policy. President Joe Biden dismissed concerns that the U.S. will experience persistent inflation, echoing views held by the Federal Reserve policy makers.
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US existing home sales data is also due today.
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