Gold and silver prices declined in the Indian markets today amid weak global cues. But a weak rupee limited the deficit. Gold futures on MCX were close to three-week low of trading ₹46,925 per 10 grams while silver fell 0.5% ₹63,877 per kg. The Indian rupee today fell sharply to 73.85 against the US dollar, largely weighed by a stronger US dollar. Gold prices in India include 10.75% import duty and 3% GST.
In global markets, gold fell to a two-week low of 1,787.81 an ounce, as a stronger US dollar hurt gold’s safe-haven appeal. Analysts say caution on the pace of a global recovery strengthened the appeal of the US dollar. Gold, on the other hand, is seen as a hedge against high inflation that may follow stimulus measures.
For gold, “$1770 support if recovery from hold is expected. Otherwise, there is a possibility of corrective selling pressure for the day,” domestic brokerage Geojit said in a note.
Gold traders will be watching the policy decision of the European Central Bank later today. Among other precious metals, silver fell 0.1% to $23.94 an ounce, while palladium fell 0.4% to $2,243.18.
For C “If prices hold above $23.70 a more turnaround is possible. A direct decline below this is a sign of weakness.”
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