Price of gold, silver today | Gold drops to nearly 10-month low, down more than 11,000 rupees from August highs; money wins


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New Delhi: Gold prices in India fell on Thursday following weakness in the global market. On MCX, the yellow metal fell to a 10-month low. Gold April Futures hit a low of Rs 44,712 per 10 grams today, down Rs 11,000 from its August high of Rs 56,200.

However, silver prices have seen some rebound today. On MCX, Silver March futures rose nearly 0.40% to Rs 66,450 per kg.

Experts say gold is likely to trade sideways for a few more days before seeing a rebound. At present, the precious metal is facing resistance of around Rs 45,600.

In global markets, gold prices edged down after rising US Treasury yields, putting pressure on non-performing assets like gold and silver. Spot gold fell to a low of $ 1,704.55 an ounce. Benchmark US Treasury yields after falling sharply last week stood at 1.47% on Wednesday, making interest-free gold unattractive to investors.

Analysts say a global equity rally on economic optimism and the strengthening US dollar continues to hit gold’s safe-haven status and hence the commodity’s price. According to experts, technically gold will remain weak as long as it stays below $ 1,760.

Typically, stronger dollar and treasury yields have an inverse correlation with gold. Looking ahead, an acceleration in the pace of vaccinations and the additional tax assistance expected in the United States has opened up the prospects for an economic recovery, which should continue to weigh on bullion. The recent strength of the dollar has been attributed to positive updates regarding the US stimulus package.

Analysts say the current correction in the yellow metal offers an opportunity to buy gold from a medium-term perspective. “From a medium-term perspective, we think $ 1,700 on Comex is good entry points from a 6 to 12 month perspective and is targeting $ 1,850 to 1,890. medium term, ”said Navneet Damani, vice president of commodities research, Motilal Oswal Financial Services, in a note.

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