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Gold prices today drop, down ₹7,000 from record highs, silver rates fall

By Priyanka Verma 
Updated Date

Gold and silver prices in India inched lower today amid flat global rates. On MCX, gold futures were marginally lower at ₹49,131 per 10 gram while silver rates fell 0.3% to ₹71,619 per kg.

Also Read :- Gold price today in India falls to 7-month lows, silver rates drop

In the previous session, both gold and silver had inched up by 0.35% each. On the domestic front, MCX gold faces resistance at ₹49550-49750 levels while has support at ₹48,210, say analysts.

Last week, gold had hit almost five-month high of ₹49,700 in Indian markets amid a global rally on lingering worries over inflation. A relatively softer dollar also improved appetite for gold. A mildly disappointing US job data that weakened US dollar, offered some support for gold. Still, gold is down about ₹7,000 from last year’s record high of ₹56,200.

In international markets, gold rates were flat, supported by a weaker dollar and lower bond yields. Spot gold was near $1,900 per ounce.

Technically, international gold is trading with marginal sideways and negative bias below $1900 levels and may continue to decline and test the support of $1875-$1865 levels, say analysts at CapitalVia Investment Advisor.

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The dollar index, which measures the greenback against a basket of major currencies, was flat at 90.003, well below a three-week high of 90.627 hit last week. The benchmark 10-year yield was pinned near more than one-week low, reducing the opportunity cost of holding non-interest bearing gold.

On gold traders’ radar will be US consumer price data to be released later this week. Gold is often viewed as a hedge against inflation.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,037.33 tonnes on Monday from 1,043.16 tonnes on Friday.

The SPDR gold backed ETFs physical holdings increased by 2.57% in May after a seventh monthly outflow till April. The physical holdings of gold backed ETFs with SPDR gold trust declined 0.14% in the first week of June.

Among other precious metals, silver rose 0.1% to $27.89 per ounce while platinum edged 0.1% higher to $1,174.02.

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Technically, “as long as silver prices stay below $30 immediate trend likely to be negative but breaking the stiff downside obstacle of $26.80 is needed to extend the momentum later,” says domestic brokerage Geojit.

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