Gold prices at one-month low, silver prices fall sharply

According to Morgan Stanley, oil and gold are the two major imports in India, accounting for 27.3% and 6.5% respectively of the total imports.

Gold futures on MCX closed down 0.4% ₹46,808 per 10 grams while silver fell 0.9% ₹63,599 per kg. In India, the Gem & Jewelery Export Promotion Council’s Bangalore exhibition will begin next week.

in global markets, Sleep It closed lower at $1,790 an ounce amid a fall in the US Federal Reserve’s deadline and uncertainty over a stronger US dollar.

The dollar index rose 0.2% to 92.642, while the benchmark US 10-year Treasury yield rose after a measure of US inflation. On Friday, data showed the producer price index for final demand, a key measure of inflation, rose higher than in the previous month. Among other precious metals, silver fell 0.9% to $23.86 an ounce, while platinum fell 1.9% to $958.51 an ounce.

Although gold is considered a hedge against inflation, the higher return translates into a higher opportunity cost for holding interest-free bullion.

“Gold has corrected sharply from recent highs amid lack of fresh triggers to increase the upside. While the price is at higher levels, we do not expect a sustained decline as rising challenges to the global economy may increase its safe haven appeal, while US economic concerns may limit any major bounce in the US dollar,” Kotak said. Securities said in a recent note.

Analysts said elevated US Producer Price Index data could lead people to believe that the Fed could show a little less housing down the road with tapering. Gold investors closely monitor the Fed’s decisions, as non-yielding bullion benefits when interest rates are lower. (with agency input)