Gold prices crash today, plunge to 4-month low, silver rates slump
Gold and silver prices continued to skid in India, tracking a global selloff in precious metals. On MCX, gold futures fell 1.3% or ₹600 to a four-month low of ₹46,029 per 10 gram while silver shed 1.6% or ₹1,000 to ₹63,983 per kg. In the previous session, gold and silver had plunged about ₹1,000 and ₹2,000 respectively.
In global markets, gold rates slumped as much as 4.4% today as better-than-expected US jobs data fueled fears that the Federal Reserve would raises rates quicker than expected. Spot gold were down 2.3% to $1,722.06 per ounce after touched $1,684.37 earlier in the session. Silver was down down 2.6% at $23.70 after slumping much as 7.5% earlier in the session.
“Weak bias for gold is likely to continue while prices stay below $1,788. Next major support is seen at $1,665 a direct drop of which is a short term bearish signal. Likewise, it required to break above $1,835 to trigger recovery rallies in the counter,” domestic brokerage Geojit said in a note.
Data released on Friday showed, US employers hired the most workers in nearly a year in July and continued to raise wages. The data boosted the dollar and benchmark US. 10-year Treasury yields, hurting gold’s appeal as an inflation hedge.
Weak ETF flows also weighed on gold. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday.
Gold has been under pressure this month on investor concern that an improving US economy and rising inflation will spur the Fed to pull back on unprecedented economic support.
NEWS CREDIT: LIVE MINT