Gold prices today fall for second day, silver rates drop sharply
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Gold prices today fall for second day, silver rates drop sharply
Gold rates are down about ?9,500 from last year's August highs
Gold prices today fell for second day in India with analysts attributing the correction to profit-taking in global markets. On MCX, gold rates were down 0.35% to ?46,600 per 10 gram while silver futures declined 0.6% to ?60,623 per kg. In global markets, gold prices fell today, pressured by a firmer dollar and higher US Treasury yields.
Investors remained cautious ahead of crucial US non-farm payrolls data due later this week. Spot gold fell 0.3% to $1,755.05 per ounce as the dollar index hovered close to its 2021 highs, denting gold's appeal for those holding other currencies.
The benchmark U.S. 10-year Treasury yields also ticked higher and remained near a three-month peak touched last week.
Gold saw martial profit booking after hitting a more than one-week high earlier as US Treasury yields firmed, but inflation concerns helped keep prices above key support at $1,750 as investors’ attention turned to upcoming jobs data. Moving forward traders will concentrate on upcoming job data and US 10 year bond yields. Technically $1776 remains as strong resistance where traders may continue to build short positions for targets of $1742," said Vidit Garg, director at MyGoldKart. Gold may trade in the range of $1742 - $1774 in near tear, he added.
Among other precious metals, spot silver fell 0.9% to $22.46 per ounce.
Traders are awaiting jobs data this week for more clues about the Fed policy outlook. According to analysts, faster-than-expected U.S. service-sector activity and price pressures from spiraling costs for crude oil and natural gas are adding to the case for a reduction in Federal Reserve bond-buying.
On the downside, gold may benefit from increasing risk aversion in global market but any major upside is unlikely as US dollar is still on firmer footing and Fed’s monetary tightening expectations persist, Kotak Securities said in a note. (With Agency Inputs)