Gold Price Fall, A Day After Big Jump, Silver Prices Drop Too
Gold prices in India took a plunge today after a big jump in the previous session. Silver rates too went down. On MCX, gold fell 0.35% to ₹47,102 per 10 gram after rising ₹400 in the previous session. Silver declined 0.4% to ₹63,332 per kg. In global markets, gold remained in a tight range near the important level of $1,800 level as the the dollar recovered some ground following a slide driven by the US inflation data. Spot gold was down 0.2% at $1,800, off its one-week peak of $1,808.50 hit on Tuesday. A stronger dollar makes gold more expensive for other currency holders.
“As a result of a weaker-than-expected rise in U.S. inflation, international gold prices are trading sideways above $1800, adding to confusion regarding the Federal Reserve’s schedule to begin asset cutting. On domestic front, MCX Gold October resumed slightly lower at 47246, trading with marginally bearish to sideways momentum. In the previous session, prices fell below 46700 for the first time in almost a month before rallying more than ₹500 to close at 47293. Market bounced from the support levels and we may expect bulls to dominate in the evening session,” CapitalVia Investment Advisor said in a report.
Data released on Tuesday showed underlying US consumer prices increased at their slowest pace in six months in August. Gold is seen as a hedge against inflation but expectations that the Fed may go slow on unwinding stimulus measures helped gold’s appeal.
Gold traders will now be watching Fed’s two-day monetary policy meeting next week for more cues on tapering.