19 Jul , 2021 By : Kanchan Joshi
Gold and silver prices remained weak today in Indian markets amid lacklustre global cues. On MCX, gold futures were flat at Rs48,076 per 10 gram while silver dropped 0.4% to to Rs68,00 per kg. In the previous session, gold had dropped Rs400 per 10 gram.
Gold prices today were also flat in global markets, supported by a retreat in US bond yields and concerns that a surge in Delta variant of coronavirus cases could hurt global economic recovery. Spot gold was up 0.1% at $1,812.83 per ounce after falling nearly 1% on Friday. Among other precious metals, silver fell 0.6% to $25.50 per ounce while platinum eased 0.2% to $1,100.55.
Weak equity markets also supported gold though a stronger US dollar capped gold's gains. Most Asian markets were lower today following a weak Wall Street close on Friday as risk sentiment remained weak amid growing inflationary pressures and surge in coronavirus cases.
The US dollar hovered near three-month highs against a basket of currencies amid safe-haven gains for the greenback.
Gold is seen as a safe investment during times of political and financial uncertainty. The precious metal has benefitted from the higher inflation as its safe haven appeal increased as hedge against inflation, say analysts.
ETF flows into gold remained weak. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.6% to nearly two-month low of 1,028.55 tonnes on Friday.
Analysts say gold remains in a range, thought supported by inflation and coronavirus concerns. Although the general bias is on the upside, one has to be cautious as any uptick in dollar might pressurize gold.
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