Gold prices fell in the Indian markets today amid weak global cues. Gold futures fall 0.1% on MCX ₹After hitting a near 6-month low of 46233 ₹45,880 on intra-day basis in the previous session. Silver futures remained flat on MCX ₹59,657.
In the previous session, gold had gained 0.65% while silver was down 0.6%. In global markets, gold was trading marginally lower at USD 1,764.94 an ounce despite selling in global equity markets. Investors remained cautious ahead of the two-day policy meeting of the US Federal Reserve starting today. Analysts expect the Fed to begin reducing its asset purchases, hinting at this.
Gold is seen as a hedge against potential inflation and currency depreciation resulting from broad stimulus. A possible increase in the interest rate would also increase the opportunity cost of holding a non-interest bearing asset.
Gold rates hit a six-month low on safe-haven demand as China’s Evergrande debt crisis fueled a sharp sell-off in equities around the world, but failed to sustain gains amid a stronger dollar, Which generally makes bullion more expensive for other currency holders.
Among other precious metals, silver rose 0.1% to $22.26 an ounce in yesterday’s session after hitting a multi-month low. (with agency input)
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