Gold and silver prices fell in the Indian markets today in view of the softening of global rates after the recent rally. Gold on MCX fell 0.15% for the first time in eight days 49240 per 10 grams. Silver futures down 0.3% 66,931 per kg. Although gold rates in India have increased 47,000 earlier this month, they’re still down 7,000 from last year’s record high.
In global markets, gold fell today to $1,858.73 an ounce, having slipped from a more than five-month high in the previous session. Better-than-expected economic data from China and concerns about possible central bank action amid inflation concerns alerted investors.
A hike in interest rates reduces the appeal of non-interest bearing gold as it increases the opportunity cost of the metal.
“Gold is struggling to gain momentum as inflation hedge and volatility inequalities face a firming US dollar index, fears of a monetary tightening from the Fed, and weak investor interest in the form of support from increased demand.” Gold has settled at $1870 an ounce level and till there are fresh triggers, said Ravindra Rao, VP – Head Commodity Research, Kotak Securities, the price could remain volatile. Dips could attract buying.
Gold has risen this month as inflation concerns fueled demand for traditional shelters.
Among other precious metals, spot silver fell 1.3% to $24.97 an ounce, while platinum fell 1.2% to $1,069.54.
According to domestic brokerage Geojit, “A break above $1870 will propel gold prices further. Otherwise, there is a possibility of a corrective selloff.”
For silver, “While prices remain above $25, the rally for the day is likely to continue. An immediate reversal point is seen at $23,” the brokerage said. (with agency input)
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