Gold prices today fell the third day in a row when futures on MCX dipped 0.25 per cent to Rs 48460 per 10 gram. Silver also skidded with MCX futures down 0.37 per cent to Rs 71,453 per kg. In the previous session, gold and silver had dipped 0.4 per cent each. Despite the recent slide, gold is one of the best-performing commodities this month, according to Bloomberg. MCX gold has resistance at Rs 49,400 and support at Rs 47,900, say analysts.
In India, the precious metal has rebounded from Rs 44,000 levels, hit in late March this year, amid an uptick in global rates. Rising coronavirus cases in many parts of the world and inflation expectations have lured investors back in gold as an inflation hedge, while central banks maintain their easy monetary stance. In August last year, gold had hit a record high of Rs 56,200 in India.
Apart from the trend in US dollar and bond yields, hopes of a swift global economic recovery and firm global equities are limiting major gains in the commodity, says Hareesh V, Research Head Commodities at Geojit Financial Services.
In global markets, gold rates were flat today, hurt by an uptick in the dollar and US Treasury yields. Investors also remained cautious ahead of the crucial US inflation data due later in the day. Spot gold was mostly unchanged at $1,896 after earlier this week rising to $1,912.50, the highest level since January.