29 Jun , 2021 By : Kanchan Joshi
Gold prices struggled today in global as well as domestic markets as the precious metal continues to suffer sharp decline this month. In global markets, spot gold was as down 0.2% at $1,775.42 per ounce and is headed for biggest monthly drop in more than four years, according to Bloomberg. Global prices are down 6.8% this month, the most since November 2016.
In domestic market, gold futures on MCX were down 0.18% to Rs46,923 per 10 gram while silver futures were also softer at Rs67,844 per kg, down 0.44%. In Indian markets, gold is down about Rs2,300 so far this month, down about 5%. Silver has also correctly sharply this month. On MCX, futures are down about 7% or Rs5,600 so far this month.
Gold has come under strong pressure this month after Federal Reserve hawkish turn, sending prices tumbling below $1,800 an ounce. A rally in equity markets and rebound in US dollar has also weighed on the precious metal.
Several Fed policy makers have turned hawkish despite a weaker-than-expected US inflation reading last week. Fed Bank of Richmond President Thomas Barkin said the central bank has made "substantial further progress" towards its inflation goal in order to begin tapering asset purchases.
The Bloomberg Dollar Spot Index is up 1.8% in June and is headed for the biggest monthly gain since March 2020. A stronger firmer dollar makes gold expensive for holders of other currencies.
Despite the sharply fall in gold prices, ETF flows have remain mixed. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.3% to 1,045.78 tonnes on Monday from 1,042.87 tonnes on Friday.
Gold traders will be keenly watching US jobs report due on Friday. Also, on the same day, ECB President Christine Lagarde will be participating in a panel discussion.
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