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

By Priyanka Verma 
Updated Date
Gold prices today drop, down ₹7,000 from record highs, silver rates fall

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.

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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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