Gold, Silver prices fall marginally - check new rates

Gold, Silver prices fall Marginally | Check latest rates here

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold and silver prices were trading in the negative territory on Friday as yellow metal in international markets fell to near two-week low on upbeat US economic data. On MCX, gold August futures were trading Rs 55 down at Rs 48,622 per 10 gram, against the last close of Rs 48,677. Silver July futures also fell Rs 162 or 0.23 per cent to Rs 70,648 per kg. It ended at Rs 70,810 per kg in the previous session. Globally, spot gold was down 0.1 per cent at $1,869.56 per ounce, after hitting its lowest since May 20, 2021, in the previous session. Prices have fallen 1.7 per cent so far this week. US gold futures eased 0.1 per cent at $1,872.10 per ounce, according to Reuters. Silver fell 0.2 per cent to $27.39 per ounce, palladium dipped 0.2 per cent to $2,832.33, and platinum slipped 0.4 per cent to $1,152.21.

The speculation that the Federal Reserve may bring forward the timeline for tapering bond purchases, especially after the upbeat US economic data has put downward pressure on the gold. The MCX gold has dropped and short-term momentum looks to be negative. The strong ADP employment suggests that tonight’s nonfarm payroll may also deliver positive surprises. So if the NFP comes better than expected, we can expect the fall may continue towards 48000-47500, however a reversal may push prices towards 49400-49800. The boost in US dollar is also putting pressure on the silver prices, and silver will track the movement in gold. However, silver being a precious as well as an industrial metal, positivity in base metals will limit the sharp downside in silver. The crucial support in MCX Silver is around 69800-68500, while resistance is around 71475-72000.

Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers

Comex gold was down 2.03% or $38.7 and closed at $1,869.3 per ounce after hitting its lowest since 20th May. Gold tanked to near two-week lows and looked set for their worst week in three months after robust U.S. economic data boosted the dollar and bond yields. Further pain came in as the Philadelphia Fed President Patrick Harker said that it may be time for Federal Reserve policymakers to start thinking about the best way to slow the pace of its asset purchases. The dollar index rose to a three-week high against its rivals, up by approx. 0.66% and closed at 90.5 in the previous session. A measure of U.S. services industry activity increased to a record high in May. Since gold and silver have fallen so sharply yesterday, we don’t deny the possibility of rebound in price. Today, crude oil prices may trend lower on risk off sentiment ahead of key US labour data and Fed chair Powell speech. Base metals may also rebound during the day session.

COMEX gold trades modestly lower near $1869/oz. Gold has fallen sharply as upbeat US economic data has pushed US dollar index and bond yields higher while adding to debate that Fed may tighten monetary policy. US equity markets have also stabilized on President Biden’s tax proposal. Gold’s sharp up move in the last few weeks has made it vulnerable to profit taking which may extend further if the US dollar strengthens further.

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