23 Sep , 2021 By : Kanchan Joshi
Gold and silver rates fell sharply in Indian markets today, tracking a drop in international rates. On MCX, gold futures were down 0.6% to Rs46,377 per 10 gram while silver rates slumped 1%. In the previous session, gold had ended flat while silver surged 1.2%.
In global markets, gold rates today dropped after US Federal Reserve signalled easing its monthly bond purchases. Spot gold was down 0.3% at $1,762.33 per ounce. The dollar index hovered near one-month high, diminishing gold's appeal for those holding other currencies.
Fed chairman Jerome Powell said the central bank could begin scaling back asset purchases in November and complete the process by mid-2022. Fed officials also revealed a growing inclination to raise interest rates next year. A rate hike increase the opportunity cost of holding gold, which pays no interest.
Gold could remain under pressure in the near term, said domestic brokerage Geojit, adding that major rallies are seen only a close above $1815.
Among other precious metals, silver fell 0.3% to $22.60 per ounce while platinum edged lower to $994.84.
For silver, “a direct rise above $23.20 is needed to continue upticks. Else, selloffs likely for the day," says Geojit.
Trend in US dollar, bond yields and equities may continue to affect gold and silver and focus will be on US and European economic data development relating to virus situation, China’s regulatory crackdown measures and geopolitical tensions, analysts said.
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