Gold prices were low today in Indian markets despite a rebound in global markets. On MCX, gold futures fell 0.12% to ??45,999 per 10 grams in the evening trade after dropping to ??45,916 at today’s low. Silver futures fell 0.74% to ??60340 per kg. In the previous session, the gold had collapsed ??600 per 10 grams and in fact since Wednesday’s high the precious metal is down about ??1,000.
In global markets, gold rates were firm today, down 1% from the previous session. Concerns over the fate of China’s Evergrande contributed to bullion’s safe haven status, although a stronger US dollar capped gains. Spot gold rose 0.5% to $ 1,750.90 an ounce. Gold fell to a month-long low on Thursday after the Fed signaled this week that it may announce a cut soon.
âThe $ 1,750 barrier has been big in the past, and I think if we get past it, we’ll get a ‘lower lower’. has traditionally provided a lot of support, and I think we would need to see a break below on the daily chart to really break down at this point. The market then turns its attention to the $ 1,500 level, âsaid Kshitij Purohit of CapitalVia Investment Advisor.
MCX gold support can be seen on ??45800 – 45500, while resistance to ??46470 – 46700.
Higher interest rates increase the opportunity cost of holding bullion, which earns no interest. Gold also competes with the dollar as a safe store of value in times of financial or political uncertainties.
Meanwhile, the China Evergrande group debt crisis has kept traders on edge,
Among other precious metals, silver climbed 0.3% to $ 22.54. Gold traders will watch Federal Reserve Chairman Powell’s opening speech at a virtual Fed event later today.
Sentiments in global markets were mixed with a bit of caution pending statements from Fed Chairman Jerome Powell later today, national brokerage Geojitin said in a note. Meanwhile, China’s Evergrande has left global investors wondering if it will make a key interest payment, adding to fears that Beijing will let foreign bondholders swallow large losses as the liquidity crunch s is getting worse in the world’s most indebted real estate company. (With contributions from the agency)
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