Gold price today falls sharply, down for third day in a row

Market


Gold fell sharply today in Indian markets, extending losses to the third day. On MCX, gold futures fell 0.65% to 47740 per 10 gram while silver dropped 0.75% to 62045 per kg, tracking softer global rates.  In global markets, spot gold declined 0.6% at $1,796.13. It’s down more than 5% this year. 

“Gold declined as investors weighed evidence that the omicron virus variant doesn’t pose a major threat to global economic growth.  The metal breached the psychologically important $1800 an ounce level. Thin trading during the holiday season may be contributing to larger swings in the price,” said Ravindra Rao, Head Commodity Research at Kotak Securities.

Global gold rates had jumped to 1-month high on Tuesday but failed to hold on to the gains as US dollar and bond yields recovered.  Higher rates increase bond yields, making non-yielding bullion less attractive.

“There are no fresh triggers in the market and we are seeing choppiness across asset classes reflecting in gold as well. Gold may continue to hover in a range near $1800/ounce amid lack of fresh cues however any stability in US dollar may pressurize gold prices,” Kotak Securities said in a report. 

“Gold has come off the highs but is still holding near $1800/oz level. We expect to see choppy trade reflecting the larger financial market amid lower year-end trading participation however general optimism about US economy and Fed’s tightening expectations may keep US dollar supported and this may keep pressure on gold,” the brokerage added. 

Silver rates were flat today near $23.03 while platinum fell 1% to $966.50 and palladium shed 1.9% to $1,952.06.

Silver has also come under pressure as gold’s recent rally fizzled out amid some stability in US dollar and bond yields. “Optimism about China’s stimulus measures is countered by economic slowdown, rising virus cases and stress in property sector. Trend in US dollar, bond yields and equities may continue to affect gold and silver and focus will be on economic data from major economies and development relating to virus situation, China’s property sector and regulatory measures and US spending bill negotiations,” Kotak Securities said. (With Agency Inputs) 

 

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!



Source link

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments