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Gold prices see downtrend today after recent surge, silver rates drop

By Saima Siddiqui 
Updated Date
Gold prices see downtrend today after recent surge, silver rates drop

New Delhi: The prices of gold logged a lower trend for the second consecutive day today after hitting a two months high in Indian market. On MCX, gold futures were down 0.07% to ₹48,195 per 10 gram while silver slipped 0.04% to ₹70,310.

Also Read :- Gold price drops, experts call it a 'golden opportunity' for buyers

In the previous session, gold had risen 0.72% to two-month high of ₹48,200 while silver had surged 2.3% or ₹1615 per kg. On MCX, gold has support at ₹46,200 and resistance at ₹48,240, say analysts.

Notably, in Indian markets, gold rates have surged more than ₹4,000 this month amid a recovery in global rates. Earlier this month, gold had slumped to near ₹44,000 levels with rising US bond yields denting the appeal of the safe-haven asset. But easing of US bond yields along with weakness in US dollar has led to a rebound in gold prices in international markets.

While, in global markets, gold today edged closer to the key psychological level of $1,800, supported by weakness in US dollar and easing Treasury yields. Spot gold was steady at $1,793.32 per ounce, after hitting a two-month high of $1,797.67.

Gold has managed to hold its support of $1760 which may to price inching towards $1820 or more, Geojit said in a note. At the same time an unexpected drop below $1725 is a bearish signal, it added.

Also Read :- Gold prices plunge about ₹2,000 per 10 gram in 3 days, silver rates slump

Benchmark US bond yields slipped below 1.6%, reducing the opportunity cost of holding non-yielding bullion. The dollar index edged 0.09% to multi-week lows of 91.043.

Gold traders will be awaiting the outcome of a European Central Bank meeting due later in the day. US Federal Reserve policy meeting is also due next week. US Federal Reserve chair Jerome Powell’s press conference next week will give more indication of interest rate forecast, say analysts.

As per reports, the US will release home sales data this Friday.

Among other precious metals, silver eased 0.5% to $26.45 per ounce and platinum slipped 0.2% to $1,211.32. A direct rise above $26.50 would extend the buying momentum in silver towards $28 or more, say Geojit. Else, there are chances of corrective selling, but major downside reversal point is placed at 23.80, the brokerage said.

On MCX, silver faces resistance at ₹71600 and has support at ₹66,800.

Also Read :- Gold prices today drop, down ₹7,000 from record highs, silver rates fall

Meanwhile, equity markets in Asia were mostly higher, seeing a rise on Wall Street. Overnight, Dow rose back above 34,000 and closing in on last week’s record finish.

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