Prices of precious metals have slipped sharply in line with global markets. On MCX, gold futures fell by almost Rs 960 or 2% on Friday to the lowest levels in almost one month of Rs 46,651 per 10 gram and silver declined by 3% or Rs 2000 to Rs 64,975 per kg.
In global markets, gold declined over 2% to $1,765.30 an ounce as the dollar increased and Treasury yields increased owing to better than expected jobs data which fuelled speculation that Federal Reserve may hit brakes on stimulus measures. The 10-year-US Treasury climbed over 1.3% while the dollar index rose 0.6% to 92.70. Higher interest costs increase the opportunity cost of holding bullion.
“Technically, international gold is trading with bearish bias near $1800. Prices may test the major support levels of $1798-$1790 levels in the coming sessions,” Kshitij Purohit, Commodities Lead at CapitalVia.
“Like Gold, International Silver is also trading with negative bias near $25.00 levels. Prices may decline and test $24.90-$24.80 levels during the evening hours. MCX Silver September gave a gap down opening and is trading with negative bias like its international counterpart. We may expect the prices to continue the bearish momentum in the evening session and test 66300 levels on the downside,” he added.
Dealers in India charged a premium over market prices of the yellow metal for the first time in a month as rates eased. According to reports, a premium of up to $1 an ounce over official gold prices in India was charged as compared to a discount of $4 an ounce discount last week. Gold prices in India attracts an import charge of 10.75% and 3% GST.
