Gold and silver prices today slid down ₹7000 from record highs in Indian markets amid 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 previous session, gold had dipped 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 prices edged lower as US Treasury yields inched higher but the precious metal still 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. Benchmark 10-year U.S. Treasury yields held firm above 1%, while the US dollar slightly lower against a basket of six currencies.
Higher yields increase the opportunity cost of holding non-yielding bullion. If the support of $1800 remains undisturbed, he added, “we can expect a recovery pullback in prices. However, it needs to break $1885 to stabilise the momentum. The immediate downside turnaround point is seen at $1770.”
Asian equity markets were mostly lower today as restrictions to curb escalating coronavirus infections dented some of the optimism around earnings and the prospect of additional stimulus.
Though gold is seen as a hedge against inflation and currency debasement, which can be caused by the massive 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.
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