03 Nov , 2021 By : Kanchan Joshi
Gold fell today in Indian markets, a day after Dhanteras. On MCX, gold futures were down 0.18% to Rs47,537 per 10 gram, extending Tuesday's loss. Silver futures were flat today at Rs63,208 per kg. As the economy recovers, retail gold-buying in India is expected go remain strong in the Diwali festive period, according to All India Gem And Jewellery Domestic Council Chairman Ashish Pethe..
Jewellers reported increased footfall at stores and brisk sales online on Tuesday. Dhanteras is considered to be auspicious for buying precious metals and other valuable items.
Lower prices also supported gold demand. Gold rates were hovering around Rs50,000 during Dhanteras last year. The precious metal has struggled after hitting a record high of Rs56,200 last year.
Some analysts remain positive on gold.
“The pandemic has not gotten over and covid cases are increasing gradually in China. The supply of essential commodities is disrupted causing the increase in inflation and the flow of commodities supply will take more than a year to improve up to its pre-pandemic levels. The outlook for gold will remain strong despite the massive vaccination program and economic revival mainly due to inflation and the economy requires more stimulus to reach pre-pandemic levels," said Abhishek Chauhan , Head Commodity and Currency, Swastika Investmart.
“The physical demand in India and China will remain strong as it was weak due to pandemic and economic slump. The rate of interest is running at the lowest levels and major central banks can not increase as the current situation is required more jobs, more support to the economy. In the upcoming year, we are expecting gold prices to move towards 52000-58000 levels," he added.
In global markets, gold prices today inched lower as investors awaited the outcome of US Fed's policy meeting. Spot gold fell 0.2% to $1,784.04 per ounce. Analysts expect the Fed to announce its stimulus tapering timeline. Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest.
Among other precious metals, spot silver fell 0.2% to $23.46 per ounce while platinum was little changed at $1,037.49.
“Gold prices continue to be choppy inside $1765-1815 levels initially and breaking any of the sides would suggest fresh direction of the commodity. Silver LBMA Spot Inability to break the resistance of $25 there are chance of choppy with mild negative bias trading for the day," Geojit said in a note.
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