1. Home
  2. Business
  3. Gold price lowers today after soaring to near one-month high, silver rates drop too

Gold price lowers today after soaring to near one-month high, silver rates drop too

By Saima Siddiqui 
Updated Date
Gold price lowers today after soaring to near one-month high, silver rates drop too

New Delhi: The Gold and silver prices in India registered a down trend on Monday amid a stronger rupee though global cues were positive. On MCX, gold futures were down 0.17% to ₹47459 per 10 gram while silver rates edged lower to ₹64,050 per kg.

Also Read :- Gold rates down Rs 8,800 from all-time high, time to invest? Know here!

On Friday, the Indian rupee had jumped to over 10 weeks against the US dollar, making gold imports cheaper into India. Gold prices in India include 10.75% import duty and 3% GST. In the previous session, gold had risen about ₹300 to near one-month high.

In global markets, gold rates today rose to almost one-month high after US Federal Reserve Chair Jerome Powell on Friday stopped short of providing any clear guidance on the timeline for paring economic support at the Jackson Hole economic conference.

Spot gold was up 0.2% at $1,819.71 per ounce. Though Powell indicated that the central bank plans to cut its asset purchases this year, he said that a lot of ground needs to be covered before Fed decides to raise interest rates. Among other precious metals, silver rose 0.3% to $24.07 per ounce, while platinum climbed 0.7% to $1,015.08.

Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers, said: “MCX gold October future may appreciate as the dollar has weakened after Fed Chair Powell offered no signal on when the central bank plans to cut its asset purchases beyond saying it could be “this year” and indicated it will remain cautious in any eventual decision to raise interest rates. On Friday, MCX Gold October appreciated by nearly 300 points hence we don’t rule out possibility of a subdued start of week but eventually we expect MCX Gold October to appreciate to Rs. 47,700 per 10 gram.”

Also Read :- Gold prices fall sharply today, record ₹8700 drop from highs, silver rates rise

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Powell’s dovish tone pushed the dollar index to a two-week low, bolstering the bullion’s appeal for those holding other currencies.

Meanwhile in India, the latest tranche of sovereign gold bonds opened for subscription today. The issue price has been fixed at ₹4,732 per gram of gold with a marginal discount for those applying online and making payment online.

Earlier, the government had announced issuance of the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021. The RBI issues the bonds on behalf of the Government of India.

Nish Bhatt, founder & CEO of Millwood Kane International, said,”Investment in Sovereign Gold Bonds is fast picking pace. As compared to investment in non-physical gold, digital gold provides high liquidity, eliminates storage cost, and is easier to sell vs physical gold. Investment in SGBs comes with an interest coupon payable semi-annually.”

Also Read :- Gold price falls for 2nd day today; records Rs 9,000 slump from record high

Further reading:
For the latest news and reviews, follow us on Facebook and Twitter ...