Gold and silver prices fell in Indian markets on Friday, amid weak global cues. Gold June futures were ruling at Rs 46,759 per 10 gram, down Rs 79 or 0.17 per cent.
From a record high level, gold prices have plunged Rs 9,432 per 10 gram or 16.78 per cent. Image: Reuters
Gold and silver prices fell in Indian markets on Friday, amid weak global cues. Gold June futures were ruling at Rs 46,759 per 10 gram, down Rs 79 or 0.17 per cent as against the previous close of Rs 46,838. Silver May futures were also trading weak at Rs 67,235 per kg, down Rs 266 or 0.39 per cent, as compared to a previous close of Rs 67,501 on the Multi Commodity Exchange. MCX gold and silver has been witnessing volatility since they hit their respective record highs in August 2020. MCX gold had hit an all-time high Rs 56,191 per 10 gram. While MCX silver had hit a recod high of Rs 77,949 per kg on August 7, 2020. From a record high level, gold prices have plunged Rs 9,432 per 10 gram or 16.78 per cent. MCX silver has tumbled 14 per cent or Rs 10,714 per kg.
Globally, gold held near a more than one-month peak touched in the previous session. Spot gold was steady at $1,755.91 per ounce, having hit a high since March 1 at $1,758.45 an ounce on Thursday. While, US gold futures fell 0.1% on Friday to $1,756.20 per ounce, according to Reuters. Comex Gold held above the $1,755 an ounce level, the highest in five weeks, amid a weaker dollar in tandem with US Treasury yields, which retreated from more than one-year highs, said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers. “Correction may take place in the intraday buy overall sentiment is still bullish in the yellow metal,” he said.
Sriram Iyer, Senior Research Analyst at Reliance Securities
Technically, MCX Gold June has given a breakout above Rs 46,700 levels at close on Thursday, indicating the positive trend to continue up to Rs 47,100-47,400 per 10 gram. While MCX Silver May has closed above Rs 67,000 per kg on Thursday and could see an upside momentum up to Rs 67,900-69,000 per kg.
The March nonfarm payrolls were surprisingly strong last month. If the current favorable trend in the U.S. labor market continues, gold may struggle. However, this week US job-related data were negative which resulted in fall in US Dollar Index and a decline in US bond yield; implying rise in gold price. In MCX Gold, the sharp rise in prices were mainly due to falling in Indian rupee, it fell more than 2 per cent in 2 days after RBI showed concerns about the economy and spread of corona virus in the country. Technically speaking, the trend in MCX gold June may continue as prices are seen forming a channel and it is taking support at lower boundary line at 44,000 levels, we expect prices to rise towards 48,500 levels in the coming days.
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