Gold prices fell sharply in the Indian markets today in view of weak global cues. Gold futures fall on MCX ₹47,403 per 10 grams, about the bottom ₹600. Silver futures also rose 1.3% or . dropped ₹around 900 ₹64,000 per kg. In global markets, gold fell 0.8% to $1,785.20 an ounce on a firming dollar and a rise in US bond yields. Investors remained cautious ahead of the Federal Reserve meeting next week.
The dollar index rose 0.43%, making bullion more expensive for holders of other currencies.
Despite high inflation expectations, Sleep Analysts say that monetary conditions and the possibility of an eventual interest rate hike have remained under pressure. The Fed is expected to announce after a meeting on November 2-3 when it will start reducing. A rise in interest rates pushes up government bond yields and the dollar, affecting the appeal of non-yielding gold.
Among other precious metals, spot silver fell 1.4% to $23.76 an ounce, while platinum fell 0.7% to $1,012.37.
“Gold prices traded under pressure from a strong dollar and mixed global cues. ECB President Christine Lagarde acknowledged high inflation, pushing back against market bets that inflationary pressures would trigger interest rate hikes as early as 2022. We expect gold price to trade sideways with COMEX spot gold resistance at $1810 and support at $1785 per ounce. . MCX Gold December support is at Rs. 47700 and resistance at Rs 48200 per 10 grams,” said Tapan Patel – Senior Analyst (Commodity), HDFC Securities.
On the other hand, rising challenges to the global economy could support the fall in gold, which could increase its safe-haven appeal, say analysts.
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