Gold prices fall again today, a drop of ₹ 2,000 in just a week

The recent fall in gold prices in India has been attributed to weak global cues. Gold futures fall 0.55% on MCX 47660 per 10 grams, about the bottom 2,000 from their previous Tuesday’s high 49,340. Silver was also under pressure and was down 1.8% 63,411 per kg.

In global markets, gold declined below $1,800 as the dollar hit a 16-month high. Yields strengthened on expectations that US interest rates would rise faster than expected after the re-election of Federal Reserve Chairman Jerome Powell. Spot gold was down 0.4% at $1,797.16 an ounce.

COMEX gold surged over $100 from lows set in early November and tested June highs of $1880/oz last week, but it failed to sustain gains.

,Sleep The move rose sharply over the past few days as rising inflationary pressures globally increased its appeal as an inflation hedge, while central banks maintained a wait-and-watch approach. However, gold lost momentum as the monetary tightening debate intensified and the US dollar set new highs. Gold’s momentum has stalled and we may see volatility till the next Fed meeting in mid-December and market players can watch economic data and Fed comments to get more clarity on the central bank’s stance,” Kotak Securities said in a recent note.

Although gold is considered a hedge against inflation and other uncertainties, a potential increase in rates to rein in rising consumer prices would increase the opportunity cost of holding non-yielding bullion.

Price pressure has been rising in the US and globally over the past few months, although it failed to provide much support to the gold price as market players worry that central banks may initiate monetary tightening to limit rising prices. .

Strength in the US currency undermines the metal’s appeal to overseas buyers. Among other precious metals, spot silver fell 1.1% to $23.89 an ounce, platinum fell 0.8% to $1,003.59 and palladium fell 0.4% to $1,946.38. (with agency input)

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