Gold prices today drop, down ₹11,000 from record high, silver rates fall

Gold prices today drop, down ₹11,000 from record high, silver rates fall

Gold and silver prices in India edged lower today amid muted global cues. On MCX, June gold futures were down 0.14% to ₹45,355 per 10 gram while silver futures edged lower to ₹65,070 per kg. Gold prices recorded their first quarterly drop since 2018 amid rising bond yields, vaccine rollouts and optimism over a recovery from the pandemic. In addition, holdings in bullion-backed exchange-traded funds have dropped to the lowest since May.
In India, gold prices have been on a downward trend since hitting ₹56,200 in August. For the first three months of the year, gold fell nearly ₹5,000 per 10 gram.

"Recovery upticks are in cards as long as gold holds $1680 on the downside. However, a break of $1760 is required to continue major rallies in the counter. Further weakness is seen only a close below $1660," Geojit said in a note.

On MCX, gold has support at ₹44,100 and resistance at ₹46,150.
In global markets, gold was steady today but a stronger US dollar and firm US treasury yields capped its upside. Spot gold was flat at $1,728.60 per ounce. Data released on Friday showed US created highest number of jobs in March in seven months amid more vaccinations and fewer business restrictions and additional pandemic relief money. The better-than-expected data pushed inflation fears but elevated bond yields took some shine off gold.

Gold is typically seen as a hedge against inflation. But higher bond yields increase the opportunity cost of holding gold.

Among other precious metals, silver rose 0.2% to $25.01, while platinum climbed 0.4% to $1,214.03.
Gold traders will be watching the progress of debate over Biden’s $2.25 trillion infrastructure proposal.

(With Agency Inputs)

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