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Gold prices today suffer 3rd fall in 4 days, silver rates drop

By Priyanka Verma 
Updated Date
Gold prices today suffer 3rd fall in 4 days, silver rates drop

Gold prices in India were under pressure today amid a drop in global rates. On MCX, gold futures were down 0.4% to ₹48,358 per 10 gram in third fall in four days.

Also Read :- Gold prices fall sharply for 2nd consecutive day, silver rates tumble too

Silver futures were down 0.8% to ₹71,748 per kg. Despite the recent fall, gold is near four-month highs amid rising inflation expectations and concerns over the resurgence of coronavirus cases in many countries. Analysts also say that the extreme volatility in cryptocurrencies this week has also supported gold at lower levels.

On Friday, the price of gold is trading lower than May 20, when the rate stood at Rs 48,598 per 10 grams. The market closed at Rs 48,544 per 10 grams on May 20 for gold. On the other hand, the price of silver stood at Rs 72,199 per kg when the market opened yesterday and the metal traded at Rs 72,304 when the market closed.

The gold and silver prices in India depend on several factors, such as the value of the rupee against the dollar, and global demand plays a key role in determining the trends observed in the rate of precious metals. Due to the deadly spread of coronavirus across the country, these prices have been affected.

Gold and Silver rates on the international market

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

In international markets, gold rates edged lower amid a rally in equity markets but a weaker dollar capped losses. Gold was also supported on the downside by growing inflationary pressure. Spot gold was down 0.2% at $1,872.21 per ounce but the precious metal was on track for over 1.5% gain this week. Among other precious metals, silver eased 0.1% to $27.72, while platinum edged 0.4% higher to $1,200.57.

The dollar index was down 0.03% to 89.770 against rivals. A weaker greenback makes gold more appealing for other currency holders. An overnight dip in benchmark 10-year US Treasury yields also supported gold. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

Technically, international gold is trading with marginal sideways bias, says CapitalVia Investment Advisor. It was unable to sustain above $1880 while MCX gold has support around ₹48,300, it added.

Asian equity markets were mostly higher today after a rebound in US stock markets following strong US jobs data. Data released on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week.

“Also weighing on price are concerns about consumer demand amid tightening virus related restrictions. Also weighing on gold price is improving virus situation in US and Europe which has led to easing of virus related restrictions. Gold rallied sharply in last few days however with lack of any fresh positive trigger from FOMC minutes, it is likely to witness some profit taking,” Kotak Securities said.

Also Read :- Cabinet approves ₹ 6.29 lakh crore relief package for pandemic-hit sectors

Gold-backed exchange-traded funds also attracted inflows. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 1,037.09 tonnes on Thursday from 1,031.27 tonnes on Wednesday.

Gold and Silver Prices in Indian cities

New Delhi—Gold Price (per 10 gram, 22Ct)–Rs 46,940,,Silver Price (per kg)– Rs 71,200
Mumbai—Gold Price (per 10 gram, 22Ct)–Rs 46,010,,Silver Price (per kg)– Rs 71,200
Kolkata—Gold Price (per 10 gram, 22Ct)–Rs 46,860,,Silver Price (per kg)– Rs 71,200
Chennai—Gold Price (per 10 gram, 22Ct)–Rs 45,990,,Silver Price (per kg)– Rs 76,400
Banglore—Gold Price (per 10 gram, 22Ct)–Rs 45,610,,Silver Price (per kg)– Rs 71,200
Hyderabad—Gold Price (per 10 gram, 22Ct)–Rs 45,610,,Silver Price (per kg)– Rs 76,400
Pune— Gold Price (per 10 gram, 22Ct)–Rs 46,010,,Silver Price (per kg)– Rs 71,200

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