14 Sep , 2021 By : Kanchan Joshi
Gold continued to trade in a narrow range today amid subdued global cues. On MCX, gold futures were down 0.1% to Rs46,860 per 10 gram in their third decline in four days while silver futures edged 0.23% lower to Rs63,155 per kg. In India, gold rates are hovering near one-month low as uncertainty over Fed tapering timeline and a stronger dollar weigh on the precious metal. In August last year, gold had hit a record high of Rs56,200 per 10 gram.
In international markets, gold edged lower today as the dollar index was steady near a two-week high while investors also remained cautious ahead of crucial US inflation data due later today.
Spot gold slipped 0.1% to $1,791.16 an ounce. “If the support of $1770 is held, chances of recovery upticks are still on cards. A direct drop below the same would call for corrective selling." domestic brokerage Geojit said in a note.
Among other precious metals, silver fell 0.3% to $23.65 per ounce, platinum dipped 0.2% to $958.73.
“Expect a choppy trading for silver with mild negative bias for the day. Further rallies are seen only a break of $24.60," Geojit added.
Meanwhile, the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.2% to 1,000.21 tonnes on Monday from 998.17 tonnes on Friday.
US consumer price data is due at 12:30 GMT and if readings come in higher-than-expected, the Fed could start tapering bond purchases could shift to November from December, say analysts. Higher treasury yields translate into higher opportunity cost for holding non-interest bearing bullion.
The inflation data comes ahead of the key policy meeting by the Federal Reserve on September 21-22, where gold traders will keep a close eye on central bank's announcement on when it will start winding up its pandemic-era bond-buying programme.
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