01 Nov , 2021 By : Kanchan Joshi
Gold and silver prices today struggled in Indian markets amid weak global cues. On MCX, gold futures edged higher 0.1% to Rs47695 after a sharp fall in the previous session. Gold prices had tumbled 0.75% on Friday. Silver futures dipped to Rs64,439 per kg ahead of Dhanteras, extending losses to the fifth day. Amid a pick-up in retail gold buying ahead of Dhanteras and Diwali, physical gold was sold at a premium in India last week, according to new agency Reuters.
Dealers in India were charging a premium of up to $0.5 an ounce over official domestic prices last week, up from previous week’s discount of $1.5. Gold prices in India include 10.75% import duty and 3% GST.
In global markets, gold rates slipped today, hurt by a stronger US dollar. Investors also remained cautious ahead of Federal Reserve policy meeting later this week. Spot gold fell 0.1% to $1,781.78 per ounce. The US dollar index edged higher to 94.192, making gold less appealing to buyers holding other currencies. The Federal Reserve's two-day policy meeting ends on Wednesday.
Expect a choppy movement in gold in near term but it required to break $1,815 to trigger further major rallies, says domestic brokerage Geojit. “However, a direct drop below $1765 is a weak signal," the brokerage added.
Among other precious metals, spot silver fell 0.2% to $23.81 per ounce while platinum rose 0.5% to $1,023.03.
“Breaking the resistance of $25 is needed to continue rallies. Otherwise a choppy trading expected the day," Geojit said.
Domestic brokerage Motilal Oswal is positive on gold in medium term. The precious metal has struggled this year after hitting a record high of Rs56,200 last year.
In a a recent note, domestic brokerage Motilal Oswal said: “We have been bullish and continue to maintain a positive bias for gold price over the next 12 months, and expect that the consolidation is stretched could see some directional move soon. The current scenario could have some short term hiccups which might give investors a better buying opportunity. We believe that gold has a potential to surge towards $2000 once again and might even make a new life time high on the Comex. On the domestic front we expect prices to surge towards highs of Rs.52000-53000 over the next 12 months."
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