Gold and silver prices today edged lower in Indian markets today amid a slide in rates of precious metals in global markets. On MCX, gold futures skidded 0.56% to ₹47549 per 10 gram, extending losses to the fourth day. In four days, gold has lost nearly ₹2000 per 10 gram amid a slide in global rates and import duty cut announced in Budget 2021. Silver futures on MCX today declined 1% to ₹67,848 per kg.
Analysts say that the slide in gold rates and a recovering economy could give a boost to physical gold demand in India. Gold rates had hit a record high of ₹56,200 in August.
Gold prices remain choppy in the $1880-1820 levels and breaking any of the sides would suggest fresh direction to the commodity in the near future, Geojit Financial said in a note. MCX gold faces resistance at ₹48,650 and has support at ₹46,620, the brokerage said.
In global markets, gold rates edged lower amid a jump in US bond yields and a stronger dollar. Spot gold eased 0.1% to $1,832.84 per ounce. The dollar index edged higher to 91.198, making precious metals expensive for holders of other currencies. US benchmark 10-year Treasury yield rose to its highest in over three weeks. Higher yields increase the opportunity cost of holding non-yielding assets like gold.
Spot silver dropped 0.5% to $26.72 as the social media-driven rally showed signs of fizzling out. Prices have eased since hitting a near eight-year peak of $30.03 on Monday. Among other precious metals, platinum fell 0.4% at $1,096.08 an ounce and palladium lost 0.2% to $2,270.06.
The rally in equity markets took a breather after a three-day rally, though US stimulus hopes continued to provide strong support. Gold traders are watching the progress of US stimulus package.
US President Joe Biden on Wednesday pledged not to reduce the cash handout included in his $1.9 trillion stimulus proposal but in a bid to get bipartisan support for the package, he did say he was willing to narrow the parameters for qualification.
US private payrolls rebounded more than expected in January, suggesting the labour market recovery was back on track after the economy shed jobs in December.