1. Home
  2. Business
  3. Gold rates plunge to 4-month low today silver rates slump too

Gold rates plunge to 4-month low today silver rates slump too

By Saima Siddiqui 
Updated Date

New Delhi: Gold and silver prices continued to decline in India, on Monday, tracking a global selloff in precious metals. On MCX, gold futures fell 1.3% or ₹600 to a four-month low of ₹46,029 per 10 gram while silver shed 1.6% or ₹1,000 to ₹63,983 per kg. In the previous session, gold and silver had plunged about ₹1,000 and ₹2,000 respectively.

Also Read :- Gold price falls as dollar climbs to 20-year high | Know the rates

In global markets, gold rates slumped as much as 4.4% today as better-than-expected US jobs data fueled fears that the Federal Reserve would raises rates quicker than expected. Spot gold were down 2.3% to $1,722.06 per ounce after touched $1,684.37 earlier in the session. Silver was down down 2.6% at $23.70 after slumping much as 7.5% earlier in the session.

“Weak bias for gold is likely to continue while prices stay below $1,788. Next major support is seen at $1,665 a direct drop of which is a short term bearish signal. Likewise, it required to break above $1,835 to trigger recovery rallies in the counter,” domestic brokerage Geojit said in a note.

Data released on Friday showed, US employers hired the most workers in nearly a year in July and continued to raise wages. The data boosted the dollar and benchmark US. 10-year Treasury yields, hurting gold’s appeal as an inflation hedge.

Weak ETF flows also weighed on gold. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday.

Also Read :- Gold prices today, Feb 22, in India surge to near 1yr high, silver rates jump

Gold has been under pressure this month on investor concern that an improving US economy and rising inflation will spur the Fed to pull back on unprecedented economic support.

“The U.S. Dollar Index gained strong upside momentum after Non Farm Payrolls report indicated that U.S. economy added 943,000 jobs in July. Meanwhile, Treasury yields are moving higher as traders bet that Fed would cut its asset purchase program in 2021. Also, Gold/Silver ratio also moved higher, back to previous week’s high level, settled near 7 2.45 this week. That is also bearish sign for silver price,” CapitalVia Investment Advisor said in a report.

The US Labor Department on Friday said nonfarm payrolls rose by 943,000 jobs last month, beating the forecast of economists in a Reuters poll. Job gains for June and May also were revised higher.

Many Fed officials, including Vice Chair Richard Clarida, had earlier said that they could envision a reduction in the central bank’s purchases of Treasuries and mortgage-backed securities if the job gains accelerated.

In India, Sovereign Gold Bond Scheme 2021-22 – Series V opened for subscription today. The issue price of the bond – at ₹4,790 per gram – is based on the simple average closing price as published by the India Bullion and Jewellers Association for gold of 999 purity of the last three business days of the week preceding the subscription period, from August 04, August 05 to August 06, 2021. Investors applying online and making payment online get a discount of ₹50 per gram.

Also Read :- Gold price today drops to lowest in nearly 2 months, silver rates fall too

Further reading:
For the latest news and reviews, follow us on Facebook, YouTube and Twitter पर फॉलो करे...