1. Home
  2. Business
  3. Gold prices fell sharply today, silver rates slump too

Gold prices fell sharply today, silver rates slump too

By Saima Siddiqui 
Updated Date

New Delhi: The prices of both precious metals; Gold and silver, suffer a sharp fall on Thursday in Indian markets, tracking decline in global rates after US Federal Reserve signalled rate hikes.

Also Read :- Gold prices today, March 7, surge, just ₹2,500 away from all-time highs

On MCX, gold futures were down 1.3% to 48,340 while silver fell 1.4% to 63,167 per kg.  In global markets, gold extended losses after plunging 1.5% in the previous session – the most in two months. Spot gold today fell 0.2% to $1,815.41 an ounce.

The dollar hit multi-week highs against other major currencies after Fed chairman Jerome Powell said there was “quite a bit of room to raise interest rates without threatening the labour market” and said the Fed was of a mind to begin lifting rates in March. U.S. Treasury yields also climbed. 

Higher yields and interest rate hikes dent the appeal of bullion by raising the opportunity cost of holding non-interest paying gold.

Among other precious metals, spot silver fell 0.8% to $23.30 an ounce while platinum slipped 1% to $1,021.

Also Read :- Gold prices today, February 15, continue rise, jump ₹2,500 in 7 days

“Gold has weakened as US dollar and bond yields edged up post Fed decision. Fed kept monetary policy unchanged as expected but Fed Chairman Powell indicated possibility of a rate hike at March meeting. Gold may remain under pressure on Fed’s hawkish stance but we may not see a break below $1800/oz as safe haven buying may lend some support,” says Ravindra Rao, Head Commodity Research at Kotak Securities.

Technical outlook on Gold

For gold, “a direct break below $1780 would trigger further selloffs in the counter. Else, a choppy trading is on the cards for the day,” Geojit said in a note. 

“Silver prices may correct further but chances for a recovery upticks are still open while it stays above $22.60,” the brokerage added. 

The Russia-Ukraine geopolitical tensions have spurred some safe-haven interest with holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust rising to a five-month high on Wednesday. 

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

Some analysts say gold may still do well as a hedge against inflation and rising geopolitical risks including a potential Russian invasion of Ukraine.

Goldman Sachs Group Inc. raised its 12-month outlook for gold to $2,150 an ounce from $2,000.

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