16 Jun , 2021 By : Kanchan Joshi
Gold continued to struggle in Indian markets amid a similar overseas trend. Gold futures on MCX were up 0.11% to Rs48,476 per 10 gram to hover near one-month lows while silver futures rose 0.4% to Rs71,547. In the previous session, gold had dropped 0.2% while silver fell 0.8%. In India, mandatory hallmarking of gold jewellery and artefacts comes into force from today in a phased manner and initially will be implemented in 256 districts of the country.
In global markets, gold rates were down to near the lowest level in four weeks amid a stronger US dollar. Traders remained cautious as they awaited outcome of the US Federal Reserve meeting for hints on tapering of economic support measures. Spot gold was down 0.2% at $1,855.12 per ounce while silver eased 0.1% to $27.62 per ounce.
According to analysts, immediate support for gold is seen around $1,850 and if this level is breached it could head towards $1,800.
The dollar index today was near one-month high against its rivals, making gold costlier for holders of other currencies.
Recent data showing a spike in U.S. consumer prices have raised concerns over rising inflation. But in recent comments top Fed officials have reiterated that rising inflationary pressures are transitory and ultra-easy monetary settings will stay in place for some time.
Gold may witness choppy as market players position for Fed decision but the the central bank is expected to maintain a dovish stance and that may keep prices supported, Kotak Securities said in a note.
Consumer demand in India remains weak as the country takes a cautious approach on easing virus related restrictions. Also weighing on gold is progress on vaccination front, say analysts. However, supporting gold price is rising inflationary pressure, they add.
Back in India, inflows into gold ETFs dropped for the month of May to a net of Rs288 crore as compared to Rs680 crore in April. The drop was attributed by analysts to a rally in domestic equity markets. Investors had put in Rs662 crore in such funds in March, Rs491 crore in February and Rs625 crore in January.
0 Comment