Gold, Silver Prices Edge Lower On Weak Global Markets

Gold, Silver Prices: Gold and silver prices edged lower on Monday on the back of weak global cues as the dollar firmed with markets closely watching a US Federal Reserve meeting for clues on when the bank will start tapering its crisis-era stimulus measures. Gold futures for delivery in October fell as much as 0.23 per cent to hit an intraday low of Rs 45,880 per 10 grams. In the spot market, fine gold with purity of 24 carats was priced at Rs 46,310 per 10 grams, 22 carat gold was being retailed at Rs 45,200, 18 carat gold was priced at Rs 37,510 and 14 carat gold was being sold at Rs 29,870 per 10 grams, according to India Bullion & Jewellers Association (IBJA)..Silver futures also came under selling pressure as the Silver futures contracts on the MCX fell 1.28 per cent or Rs 770 to touch an intraday low of Rs 59,222..In the international markets, gold prices hit a more than five-week low on Monday wherein the spot gold fell 0.3 per cent to $1,748.69 per ounce by 8:42 am. Prices had touched $1,741.86 earlier in the session, their lowest level since August 12..Bullion is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. The Fed's tapering could tackle both those conditions, diminishing gold's appeal. The Fed is expected to open the door to reducing its monthly bond purchases when it meets on Sept. 21-22, while tying any actual change to U.S. job growth in September and beyond.."COMEX gold trades little changed near $1752/oz after a 0.3 per cent decline in previous session. Weighing on gold price is firmness in US dollar amid increased expectations that Fed may chalk out a plan for bond tapering. However, supporting price is choppiness in equities amid increasing concerns about the health of the Chinese economy, inflation concerns and geopolitical issues. ETF inflows also show some buying however the pace was modest. Gold's sharp fall has dented market sentiment and price may remain under pressure ahead of the Fed's meeting this week," Ravindra Rao, Head of commodity research at Kotak Securities said in a statement..Internationally, silver fell 1.2 per cent to $22.13 per ounce, after earlier hitting its lowest level since November 2020 at $22.01.

Gold, Silver Prices Edge Lower On Weak Global Markets

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