Gold prices crash today, plunge to 4-month low, silver rates slump
Gold and silver prices continued to skid in India, tracking a global selloff in precious metals. On MCX, gold futures fell 1.3% or ₹600 to a four-month low of ₹46,029 per 10 gram while silver shed 1.6% or ₹1,000 to ₹63,983 per kg. In the previous session, gold and silver had plunged about ₹1,000 and ₹2,000 respectively.
In global markets, gold rates slumped as much as 4.4% today as better-than-expected US jobs data fueled fears that the Federal Reserve would raises rates quicker than expected. Spot gold were down 2.3% to $1,722.06 per ounce after touched $1,684.37 earlier in the session. Silver was down down 2.6% at $23.70 after slumping much as 7.5% earlier in the session.
“Weak bias for gold is likely to continue while prices stay below $1,788. Next major support is seen at $1,665 a direct drop of which is a short term bearish signal. Likewise, it required to break above $1,835 to trigger recovery rallies in the counter,” domestic brokerage Geojit said in a note.
Data released on Friday showed, US employers hired the most workers in nearly a year in July and continued to raise wages. The data boosted the dollar and benchmark US. 10-year Treasury yields, hurting gold’s appeal as an inflation hedge.
Weak ETF flows also weighed on gold. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday.
Gold has been under pressure this month on investor concern that an improving US economy and rising inflation will spur the Fed to pull back on unprecedented economic support.
“The U.S. Dollar Index gained strong upside momentum after Non Farm Payrolls report indicated that U.S. economy added 943,000 jobs in July. Meanwhile, Treasury yields are moving higher as traders bet that Fed would cut its asset purchase program in 2021. Also, Gold/Silver ratio also moved higher, back to previous week’s high level, settled near 7 2.45 this week. That is also bearish sign for silver price,” CapitalVia Investment Advisor said in a report.
The US Labor Department on Friday said nonfarm payrolls rose by 943,000 jobs last month, beating the forecast of economists in a Reuters poll. Job gains for June and May also were revised higher.
Many Fed officials, including Vice Chair Richard Clarida, had earlier said that they could envision a reduction in the central bank’s purchases of Treasuries and mortgage-backed securities if the job gains accelerated.
In India, Sovereign Gold Bond Scheme 2021-22 - Series V opened for subscription today. The issue price of the bond - at ₹4,790 per gram - is based on the simple average closing price as published by the India Bullion and Jewellers Association for gold of 999 purity of the last three business days of the week preceding the subscription period, from August 04, August 05 to August 06, 2021. Investors applying online and making payment online get a discount of ₹50 per gram.
(With Agency Inputs)
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Gold Price Today: Yellow Metal Sees Sharp Fall Universally
Gold Price Today: Yellow metal price fell sharply in domestic markets and also globally
Yellow metal prices on Monday fell on the MCX as well as in the global markets, as gold October futures plunged by 2.52 per cent to reach Rs 46,640 per 10 gram mainly due to rupee appreciation.
Globally too, gold fell by as much as 4.4 per cent to a more than four-month low as robust US jobs data stoked concerns of a sooner-than-expected interest rate hike, which could increase the opportunity cost of holding non-interest bearing bullion.
Also silver September futures on the MCX fell by 4.20 per cent to reach Rs 65,000 per kg. On the COMEX, silver prices declined by 4.5 per cent to trade at $24.33 per ounce for the week.
Gold prices fell to touch $1,763 per ounce for the week, which was its worst fall in the last four months.
“COMEX gold witnessed a volatile start to the week. Price hit a session low of $1677.9 per ounce and is currently trading 1.4 per cent lower near $1738 per ounce. The snap reaction can be attributed to lower trading volumes amid holidays in Japan, Singapore. Weighing on gold price is increased expectations of Fed’s monetary tightening post US non-farm payrolls data and some hawkish comments by Fed officials. ETF outflows also show weaker investor interest amid continuing firmness in equities. However, rising virus cases and increased geopolitical tensions have lent some support. Gold may remain under pressure as market players react to US non-farm payrolls report,” said Ravindra Rao, Head Commodity Research with Kotak Securities.
Gold Price Today, 09 August 2021: Good time for investors again? Gold cheaper by nearly Rs 10,000 from record highs
New Delhi: Gold prices have been on a very topsy-turvy run lately. The price of the yellow metal has once again slipped by a good margin, thus paving way for investors to purchase gold.
Gold prices fell Rs 402 to Rs 46,238 per 10 grams in the futures trade on Monday, as speculators cut their positions amid low demand. On the Multi Commodity Exchange, gold contracts for the October delivery traded lower by Rs 402, or 0.86 per cent, to Rs 46,238 per 10 gram in a business turnover of 13,655 lots.
Gold cheaper by nearly Rs 10,000 from the highest level
Last year, due to the Corona crisis, people had invested heavily in gold. In August 2020, the price of 10 grams of gold on MCX reached the highest level of Rs 56191. Last year, gold gave a return of 43%. If compared to the highest level, gold has declined by 25 percent. Gold is at the level of Rs 46,238 per 10 grams on MCX, which is still cheaper by Rs 9,953.
Gold movement for July 02-06 (MCX October Futures)
Monday 48086/10 grams
Tuesday 47864/10 grams
Wednesday 47892/10 grams
Thursday 47603/10 grams
Friday 47570/10 grams
Gold in the national capital on Monday dipped Rs 317 to Rs 45,391 per 10 grams, in line with a fall in international precious metal prices. In the previous trade, gold closed at Rs 45,708 per 10 grams. Silver also tumbled Rs 1,128 to Rs 62,572 per kg, from Rs 63,700 per kg in the previous trade. In the international market, gold was trading lower at USD 1,749 per ounce and silver also dipped marginally to USD 23.91 per ounce.
With Agency Inputs
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