Gold and silver prices today dipped in Indian markets, tracking softer global rates. On MCX, gold futures were down 0.23% to ₹46,779 per 10 gram while silver futures were off 0.5% to ₹60,651 per kg. In the previous session, gold had jumped 0.8% while silver rose 0.65%.
In global markets, gold rates were lower today amid a stronger US dollar but concerns over global economic growth supported the precious metal at lower levels. Spot gold fell 0.4% to $1,761.69 per ounce, after hitting $1,770.41 in the previous session, its highest in about two weeks.
The dollar index rose 0.22% to 93.990, making gold more expensive for those holding other currencies, while Asian equity markets slid, following a tech-led selloff on Wall Street.
Analysts expect gold to remain choppy in the $1,750-$1,785.00 range ahead of the US non-farm payrolls data on Friday.
On the other hand, concerns over global economic growth amid higher energy prices, US-China trade ties, China Evergrande crisis and a stalemate over the US debt ceiling could support the precious metal on the downside, they add.
Risky assets were weak as investors remain anxious about global growth risk, which coupled with inflation worries and early rate hikes from major economies, said domestic brokerage Geojit in a note.
Among other precious metals, spot silver fell 0.8% to $22.47 per ounce while platinum shed 0.6% to $960.89.
The US Fed has indicated that it will start tapering of stimulus this year and the nonfarm payrolls data, due later this week, is expected to show continued improvement in the labour market.
Reduced stimulus and interest rate hikes lift bond yields, weighing on gold as it translates into increased opportunity cost of holding non-interest-bearing bullion. (With Agency Inputs)
Never miss a story! Stay connected and informed with Mint.
our App Now!!