Tags: Gold
Gold and Silver Drastically Reduced in Indian Markets

Gold and silver prices extended their decline

According to the latest news, gold and silver prices extended their decline in Indian markets. Significantly, stronger American currency weighed on the yellow and white metals. On Multi Commodity Exchange, gold futures declined by 0.33% and settled at Rs 48,702 per 10 gram in the fifth straight day of fall. Meanwhile, the silver rate dropped by 1% and traded at Rs 65,866 per kg. March silver was trading 1% lower at Rs 65,869 a kilogram.

The yellow metal had fallen by 0.11% in the previous session while the white metal had dipped by 0.64%. Significantly, gold rates are down about Rs 7,500 from their August highs of Rs 56,300.

Meanwhile, in global markets, gold-rated fell on January 28, pressurised bu a stronger greenback. Spot gold fell by 0.3% and touched $1,839.21 per ounce. A stronger U.S. dollar makes gold more expensive for other currencies holders.

Significantly, the U.S. dollar index increased by 0.12% and settled at 90.745. Overnight. The U.S. Federal Reserve left its key overnight interest rate near zero and kept its monthly bond purchases unchanged.

Among other precious metals, silver dropped by 0.2% and traded at $25.18 an ounce, while platinum dipped 0.2% and touched $1,063.76.

According to Kshitij Purohit, Lead – International & Commodity at CapitalVia, downside strong support for gold is $1,825 – $1,815 levels, while resistance is placed at $1,857 – $1,875 levels. Support for the metal is placed at Rs 48,400 – 48,270, while resistance stands at Rs 49,100 – 49,470.

SPDR Gold Trust fell to 1,169.17 tonnes

Furthermore, Gold ETF flows showed weaker investor interest. SPDR Gold Trust, holdings of the world’s largest gold-backed exchange-traded fund, declined by 0.3% and touched 1,169.17 tonnes on Wednesday.

Additionally, global stocks continued to extend their retreat from last week’s lifetime high amid worries about valuations.

Kotak Securities announced that gold traders would be watching out for the fourth-quarter US GDP. Especially for initial jobless claims and new home sales releases later today.

Comex gold was trading 0.5% lower at $1,835 after falling 0.3% the previous day. Gold weakened as the Fed painted a downbeat outlook for the U.S. economy but did not hint towards additional measures.

Moreover, in global markets, the yellow metal is down nearly 3% so far this month, its worst January performance since 2011. According to analysts, gold’s consolidation phase resumes. The bull case should remain in place if values can hold the $1,800 level over the next few weeks.

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