Gold prices fall Rs 2,600/gram in 2 days; silver dips Rs 5,000/kg as Iran war fears mount again. Buy, sell or hold?
Gold and silver prices declined on the MCX as investors booked profits after a sharp rally, with silver falling Rs 5,000 over two days and gold down Rs 2,600 per gram. Analysts expect near-term profit booking in gold, while silver could move towar...
By Veer Sharma, ETMarkets.com |
ETMarkets.com
Profit booking cools precious metals after their recent surge
Gold and silver prices opened lower on the MCX on Friday as investors booked profits after a sharp surge in the last couple of sessions. The drop came despite mild US inflation data, which also weakened expectations of a Federal Reserve rate hike in September.
In the domestic market, MCX silver futures for September 2026 delivery were down by Rs 2,537 to Rs 2,32,910 per kg. Gold futures for October 2026 delivery declined by Rs 1,162 to Rs 1,52,304 per 10 grams. Silver is down Rs 5,000 over two days, while the yellow metal has declined Rs 2,600/gram.
US producer prices were unchanged in July as goods prices declined and the cost of services rose marginally. The data strengthened expectations that the Fed could leave interest rates unchanged next month. The report from the US Labor Department came a day after data showed consumer inflation remained mild last month.
On the geopolitical front, Washington on Thursday threatened to keep a naval blockade of Iran in place indefinitely, increasing economic pressure on Tehran as ceasefire talks stalled.
Demand for gold has remained strong, with economic and political developments supporting interest in the metal among investors globally, particularly central banks. The Bank of Korea held 6,79,765 shares of SPDR Gold Trust, worth around $250.4 million at the end of June, according to a US SEC filing. This marked its first disclosed gold investment since it bought physical gold in 2013.
Also read: Down 48% from peak, but silver still beats gold, equity to post best 5-year returns. Time to buy?
Bullion touched its highest level since June 5 on Thursday before ending the session 1.3% lower, wiping out its gains for the week.
Among other precious metals, spot silver fell 0.8% to $63.92 per ounce. Platinum declined 1% to $1,700.60, while palladium slipped 0.3% to $1,303.25. Both platinum and palladium were at their lowest levels since August 4.
Silver prices continued their rally as investment demand picked up. MCX Silver September could rise to Rs 2,40,000 per kg, although the possibility of profit booking cannot be ruled out.
Read more: Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
In the domestic market, MCX silver futures for September 2026 delivery were down by Rs 2,537 to Rs 2,32,910 per kg. Gold futures for October 2026 delivery declined by Rs 1,162 to Rs 1,52,304 per 10 grams. Silver is down Rs 5,000 over two days, while the yellow metal has declined Rs 2,600/gram.
US producer prices were unchanged in July as goods prices declined and the cost of services rose marginally. The data strengthened expectations that the Fed could leave interest rates unchanged next month. The report from the US Labor Department came a day after data showed consumer inflation remained mild last month.
On the geopolitical front, Washington on Thursday threatened to keep a naval blockade of Iran in place indefinitely, increasing economic pressure on Tehran as ceasefire talks stalled.
Demand for gold has remained strong, with economic and political developments supporting interest in the metal among investors globally, particularly central banks. The Bank of Korea held 6,79,765 shares of SPDR Gold Trust, worth around $250.4 million at the end of June, according to a US SEC filing. This marked its first disclosed gold investment since it bought physical gold in 2013.
Also read: Down 48% from peak, but silver still beats gold, equity to post best 5-year returns. Time to buy?
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Gold, silver international prices
Spot gold was down 0.5% at $4,330.37 per ounce as of 0103 GMT, while US gold futures for December delivery fell 0.8% to $4,386.80.Bullion touched its highest level since June 5 on Thursday before ending the session 1.3% lower, wiping out its gains for the week.
Among other precious metals, spot silver fell 0.8% to $63.92 per ounce. Platinum declined 1% to $1,700.60, while palladium slipped 0.3% to $1,303.25. Both platinum and palladium were at their lowest levels since August 4.
How should you trade gold?
Jigar Trivedi of IndusInd Securities suggests that MCX Gold would witness profit booking, and Rs 1,54,000/per gram is support for the day.ADVERTISEMENT
Silver prices continued their rally as investment demand picked up. MCX Silver September could rise to Rs 2,40,000 per kg, although the possibility of profit booking cannot be ruled out.
Read more: Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?
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Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,12,752/8 grams while pure gold (24 carat) prices stand at Rs 1,22,992/8 grams.Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,12,632/8 grams while pure gold (24 carat) prices stand at Rs 1,22,872/8 grams.Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,13,768/8 grams while pure gold (24 carat) prices stand at Rs 1,24,112/8 grams.Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,12,632/8 grams while pure gold (24 carat) prices stand at Rs 1,22,872/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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