Gold prices fall for the second day today, silver rises after reaching 9-month high

in global markets, Sleep It was flat with a stronger US dollar, taking away some of the precious metal’s sheen. Spot gold held steady at $1,854.07 an ounce. A stronger dollar increases the price of gold for buyers holding other currencies. Among other precious metals, spot silver rose 0.6% to $24.94 an ounce, while platinum rose 0.3% to $1,064.30.

“Gold retreated from several-month highs as upbeat US retail sales data for October strengthened the dollar, making the metal more expensive for holders of other currencies. Technically, Vidit Garg, director of MyGoldkart said There is very important support for gold at $1850 and $1840 and if these levels are respected we could see $1870 or $1873 in the near term.

The dollar was near a 16-month high against a basket of currencies today, supported by data showing a jump in US retail sales last month.

Analysts say though inflationary concerns are supportive of gold, a stronger dollar is limiting the upside.

“Gold hit a new June high on Tuesday but failed to sustain and ended lower. Gold is struggling to build on recent momentum amid growing debate about the Fed’s monetary tightening amid some upbeat economic data and mixed comments from central banks. However, support prices are fueled by rising inflationary concerns, geopolitical tensions and renewed virus concerns. “Gold’s sharp rise has made it vulnerable to profiteering and we may see some correction if the US dollar strengthens,” said Ravindra Rao, VP – Head Commodity Research, Kotak Securities.

Gold, often viewed as inflation-hedging, has benefited from easing monetary policy during the pandemic, but any increase in rates should reduce the appeal of bullion as higher interest rates offer opportunities for the non-interest-bearing metal. increase the cost. (with agency input)