New Delhi: Prices of yellow metal fell for fifth day on Tuesday while silver continued its downtrend in Indian markets, tracking softer global rates. On MCX, June gold futures fell 0.3% to near one-year low of ₹44,300 while silver fell 0.8% to ₹62,617 per kg.
In the previous session, gold had declined 0.5% while silver declined 1.7%. In global markets, gold rates moved lower today after latest official data showed a pick-up in factory activity in China.
Spot gold was down 0.1% to $1,683.56 per ounce, also pressured by a rise US Treasury yields added further pressure. Higher returns from bonds increase the opportunity cost of holding non-yielding gold. US bond yields had risen to a 15-month month high of 1.776% on Tuesday
“International gold is trading with bearish momentum and breached the psychological levels of $1700. Support is at $1680-$1685 levels, which could be tested in the upcoming sessions. On the domestic front, MCX Gold June has been sustaining below 50-SMA. 44000 levels could provide a support to the prices,” says an Investment Advisor.
Among other precious metals, where silver was steady at $24.01, platinum rose 0.5% to $1,160.05 while palladium went up 0.7% at $2,607.04.
Meanwhile, Kotak Securities said that it does expect a sharp fall in gold rates from current levels due to the surge in coronavirus cases across many parts of the world. “We may see price remaining under pressure as US optimism lends support to US dollar and bond yields however a sharp fall is unlikely given the worsening virus situation,” the brokerage said.
Notably, Gold prices in India have been witnessing a downward trend since hitting a record high of ₹56,200 in March.