Gold prices slide today for the third day in a row, down 8,000 from a record high



Gold and silver rates have remained low in the Indian market today amid the recent downward trend in international rates. On MCX, gold slipped to 48,493 per 10 grams, extending losses to the third day, while silver fell 0.8% to 71301 per kg. During the previous session, gold had fallen 0.8% while silver had fallen 0.56%. MCX gold has support for 47 350 and resistance to 49,200, analysts say.

Gold failed to hold onto gains after hitting 5-month highs at 49,700 earlier this month. In August of last year, gold hit a record high of 56,200.

In global markets, gold rates fell 0.2% to $ 1,861 per ounce, amid a strengthening US dollar. Silver also remained weak, falling 0.7% to $ 27.64 an ounce. Investors remained cautious ahead of the two-day US Federal Reserve policy meeting that ends tomorrow. The dollar index hovered near a one-month high against its rivals, making gold more expensive for other currency holders.

Yields on 10-year US Treasuries were flat today after hitting three-month lows last week. It also dampened the appeal of the non-interest bearing precious metal.

Support for gold is estimated at $ 1,842 and a drop below that level could prolong the downside momentum, according to Geojit. On the other hand, prices have to go above $ 1,900 to reverse the trend, he added.

Gold traders are also awaiting monthly US retail sales data, due later today.

“Global markets will be watching closely for the results of the Fed’s meeting on Wednesday, especially for clues regarding the possible timing of the cut. The US 10-year yield hovering around a 3-month low at 1.48% indicates that the market is not expecting a major market move. Fed announcement, ”said Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Rising inflation concerns have benefited gold as it is seen as a hedge against inflation, but it could also force policymakers to cut stimulus more quickly, analysts said.

Market participants will be wary of a hawkish surprise that could at least temporarily push the US dollar up, said Sriram Iyer, senior research analyst at Reliance Securities.

Technically, for the money, “the inability to break through the immediate bullish hurdle of $ 28.50, chances are the selling pressure will continue towards $ 26.80 initially. “, explains Geojit.

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