Gold October futures were trading down Rs 370 or 0.70 per cent at Rs 52,252 per 10 gram, while silver September futures were ruling at Rs 67,440 per kg, down Rs 523 or 0.77 per cent on MCX
Gold prices continued to falter for the second straight day on Thursday after the minutes of the US Federal Reserves policy’s last meeting showed that the policymakers expressed little support to cap bond yields. Gold prices have been trading volatile in domestic markets after hitting a new all-time high of Rs 56,191 per 10 gram on August 7. Around 9.45 AM, gold October futures were trading down Rs 370 or 0.70 per cent at Rs 52,252 per 10 gram, while silver September futures were ruling at Rs 67,440 per kg, down Rs 523 or 0.77 per cent on MCX. “Today we are seeing profit booking in gold and silver due to no physical demand on higher levels and people are selling gold to book profit on higher levels,” said Anuj Gupta, DVP- Commodities and Currencies Research at Angel Broking.
In the previous session, gold prices fell 1.77 per cent or Rs 949 to close at Rs 52,622 per 10 gram, while Silver prices dropped 2.22 per cent to settle at Rs 67,963 per kg. “The yellow metal fell as the Trump administration said a smaller coronavirus bill could be reached, of around $500 billion as against anything between $1 to $3 trillion. The dollar rebounded hence sentiments would be weak during intraday,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.
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For the intraday trading, analysts suggest selling the yellow metal. “Sell gold at Rs 52,600 level with a stop loss of Rs 53,100 for target price at Rs 51,700 per 10 gram. Also sell silver at Rs 68,000 per kg, with the stop loss of Rs 69,700 and target of 64,500 levels,” Anuj Gupta added.
Globally, gold recovered some poise after the U.S. Federal Reserve warned that a recovery from the pandemic-induced economic slump faced a highly uncertain path, according to Reuters. Spot gold was up 0.5 per cent at $1,940 per ounce. US gold futures fell 1.4% to $1,943 per ounce. Among other metals, silver rose 0.8 per cent to $26.94 per ounce, platinum climbed 0.3 per cent to $934.01, and palladium gained 0.4% to $2,165.86.