Today Gold rates drop for 2nd day, down ₹7000 from record highs, silver rates fall
Today in Indian markets Gold and silver prices fell in the middle of weak global cues. On MCX, gold futures dipped 0.11% to ₹49,394 per 10 gram while silver dropped 0.71% to ₹66,821 per kg. In the prior session, gold had dropped 0.18% while silver edged up 0.5%. MCX gold has support at ₹47400 and resistance at ₹50,680, Geojit Financial Services said in a note.
In global markets, gold rates edged lower as US Treasury yields inched higher but the precious metal remained on course for a nearly 2% weekly gain. Spot gold today fell 0.3% to $1,863.56 per ounce. Among other precious metals, silver shed 1.1% to $25.67 an ounce while platinum fell 1.2% to $1,113.40.
'A weak U.S dollar continues to offer support to the yellow metal. Likewise, hopes of fresh economic stimulus measures from the US and fears of a second wave of infection also continue to lift the demand for the commodity. Meanwhile, an improved global growth outlook would restrict major rallies in the counter,' says Hareesh V, Research Head Commodities at Geojit Financial Services.
If the support of $1800 remains undisturbed, he added, 'we can expect a recovery pullback in prices. However, it needs to break $1885 to stabilize the momentum. The immediate downside turnaround point is seen at $1770.'
Though gold is seen as a hedge against inflation and currency debasement, which can be affected by the enormous stimulus measures, analysts say that it remains to be seen whether the stimulus proposed by US President Joe Biden would go through both houses of Congress as quickly as Biden's expectations.