Gold Price Today: Gold Slips Below Rs 48,500, Silver Declines

Gold Price Today: Gold prices edged lower today as hopes of quick economic recovery lifted demand for riskier assets, although a weaker dollar and lower US Treasury yields limited losses for the safe-haven metal. Precious metals in domestic markets followed global trends and slipped on opening.

Gold Price Today

The dollar languished near four-month lows against major currencies, making gold cheaper for other currency holders. US Treasury long-dated yields fell to two-week lows after a few Federal Reserve officials affirmed their support to keep monetary policy accommodative for some time.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3 per cent to 1046.12 tonnes on Monday from 1042.92 tonnes on Friday. Some investors view gold as a hedge against higher inflation. Sentiment in wider financial markets remained upbeat.

Domestic investors have shown interest in gold saving funds and gold ETFs in the recent months ahead of an uncertain economic environment in the wake of the second wave of coronavirus. Analysts expect the positive trend to continue in the current fiscal as precious metal remains under the radar of investors.

Gold Price Today
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Gold Price Today

Gold futures on Multi Commodity Exchange (MCX) were marginally down by 0.26 per cent or Rs 124 at Rs 48,429 per 10 grams. Silver futures were up by 0.48 per cent or Rs 348 to Rs 71,463 per kg.

COMEX gold trades 0.2 per cent lower near $1880/oz after a 0.4 per cent gain yesterday. Gold weakened amid reduced safe haven buying on the back of stability in equity markets and Israel-Hamas ceasefire and concerns about Indian consumer demand,” Ravindra Rao, CMT, EPATVP-Head Commodity Research, Kotak Securities.

In the spot market, highest purity gold was sold at Rs 48,672 while silver was priced at Rs 71,075 on Monday, according to the Indian Bullion and Jewellers Association. “However, supporting price is continuing ETF inflows and loose monetary policy stance of major central banks. Gold’s struggle to break past the $1900/oz level and stability in the equity market may make it vulnerable to profit taking.”

Gold Price Analysis
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