Gold price today falls for third time in 4 days, down ₹9,500 from record highs

By Surajit Dasgupta
MCX gold price fell below ₹46,900 per 10 gram

Gold continued to trade in a narrow range today amid subdued global cues. On MCX, gold futures were down 0.1% to 46,860 per 10 gram in their third decline in four days while silver futures edged 0.23% lower to 63,155 per kg. In India, gold rates are hovering near one-month low as uncertainty over Fed tapering timeline and a stronger dollar weigh on the precious metal. In August last year, gold had hit a record high of 56,200 per 10 gram. 

In international markets, gold edged lower today as the dollar index was steady near a two-week high while investors also remained cautious ahead of crucial US inflation data due later today. 

Spot gold slipped 0.1% to $1,791.16 an ounce. “If the support of $1770 is held, chances of recovery upticks are still on cards. A direct drop below the same would call for corrective selling." domestic brokerage Geojit said in a note. 

Among other precious metals, silver fell 0.3% to $23.65 per ounce, platinum dipped 0.2% to $958.73. 

“Expect a choppy trading for silver with mild negative bias for the day. Further rallies are seen only a break of $24.60," Geojit added. 

Meanwhile, the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.2% to 1,000.21 tonnes on Monday from 998.17 tonnes on Friday.

US consumer price data is due at 1230 GMT and if readings come in higher-than-expected, the Fed could start tapering bond purchases could shift to November from December, say analysts. Higher treasury yields translate into higher opportunity cost for holding non-interest bearing bullion. 

The inflation data comes ahead of the key policy meeting by the Federal Reserve on September 21-22, where gold traders will keep a close eye on central bank's announcement on when it will start winding up its pandemic-era bond-buying programme. (With Agency Inputs)

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