Gold and silver prices in India traded sharply lower on Thursday, following weakness in international bullion prices, amid profit-booking after the recent rally and elevated US dollar.
MCX gold rate for October futures contracts declined by Rs 1,289, or 0.83%, to Rs 1,53,593 per 10 grams. It touched an intraday low of Rs 1,53,535 level.
MCX silver price for September futures contracts traded lower by Rs 2,618, or 1.10%, at Rs 2,35,217 per kg. During the session, silver rate slipped to Rs 2,35,000 level.
In the global market, gold prices fell after touching a more than two-month high earlier in the session.
Spot gold price fell 0.5% to $4,383.53 per ounce, after jumping about 1% to its highest since June 5. US gold futures for December delivery fell 0.6% at $4,440.80. Spot silver fell about 0.3% to $65.09 per ounce.
Elevated US dollar and Treasury yields also weighed on the gold prices. The dollar index reclaimed the 100.02 mark, while the US 10-year bond yield climbed to 4.69%, weighing on gold's safe-haven appeal.
“Gold prices are witnessing profit booking amid a slight rebound in the dollar index as US-Iran peace talks prospects fade. Investors now await producer inflation data due later in the global day for further clues on the trajectory of price pressures,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
ALSO READ: Shiprocket IPO GMP: What Grey Market Premium Signals On Day 2 Of Subscription
The recent rally in gold prices was led by cooling US inflation, which eased fears of near-term interest rate hike by the US Federal Reserve.
Markets now see around a 40% chance of a 25-basis point US Fed rate hike in September, down from nearly 50% a day earlier.
Gold, Silver Rate Outlook
According to Trivedi, MCX gold price may find support at Rs 1,52,500 level, while resistance is placed at Rs 1,54,800 level.
Support for silver prices on MCX is seen at Rs 2,30,000, and resistance at Rs 2,38,000 level.
ALSO READ: Catch Stock Market Live Updates Here
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
