Gold prices down ₹9,500 from record highs after sharp fall in two days
Premium- In India, gold rates had hit a record of ₹56,200 in August 2020 and has been under pressure since then.
Gold prices today struggled in Indian markets, extending the bearish pressure of recent sessions. On MCX, the precious metal was flat at ₹47,617 per 10 gram (futures) while silver edged 0.2% lower to ₹60,930 per kg. In the previous two sessions, gold had tumbled about ₹1,000 per 10 gram, in tandem with a fall in global rates after Fed signalled more aggressive stance and pushed the dollar higher.
In India, gold had hit a record of ₹56,200 in August 2020 and has been under pressure since then.
In global markets, gold was today down 0.2% at $1,788.41 per ounce and set for its biggest monthly drop since last September. A stronger dollar makes bullion more expensive for holders of other currencies. The US dollar today hovered close to an 18-month peak scaled last Friday. Among other precious metals, silver shed 0.3% to $22.36 an ounce, while platinum was up 0.1% at $1,008.27.
“Gold has been under pressure after Fed signalled more aggressive stance and pushed the dollar higher. Moving forward all eyes will be on payroll data coming this week. Technically on daily charts Gold is on bearish state but further weakness is only expected below $1,777 and on the contrary side if prices sustains above $1,803 then we may witness Bulls coming back in picture. Technically, for intra-day if prices sustains above $1,790 then we may witness $1,798 and $1,800 kind of levels," said Vidit Garg, director of MyGoldKart.
The US Federal Reserve earlier this month signalled plans to raise interest rates in March. Although gold is considered a hedge against inflation, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.
“Weighing on gold price is expectations of aggressive rate hikes by Fed. ETF investors have also moved to side-lines post Fed meeting. Gold remains below $1,800 level reflecting bearish sentiment. However mixed factors may keep prices in a range ahead of central bank meetings this week," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
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Gold traders will watch out for policy decisions from Australian, UK and European central bank meetings expected this week. (With Agency Inputs)
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