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Gold rate today: Yellow metal falls; Support placed at Rs 52,400 per 10 grams level
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Gold rate today: Yellow metal falls; Support placed at Rs 52,400 per 10 grams level
Aug 14, 2020 3:00 AM

Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday tracking weakness in international spot prices amid strong US dollar and as investors opted profit-taking after a rally in the previous session, analysts said.

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At 11:55 am, gold futures for October delivery fell 0.69 percent to Rs 52,566 per 10 grams as against the previous close of Rs 52,930 and opening price of Rs 52,675 on the MCX. Silver futures traded 2.10 percent lower at Rs 69,584 per kg. The prices opened at Rs 70,650 as compared to the previous close of Rs 71,077 per kg.

“Gold prices fell on profit booking after yesterday’s gains. Macro data from the US supported risk sentiment while strong rupee against the US dollar further pressurized the yellow metal prices,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.

In the international market, gold fought for traction on Friday as a jump in US Treasury yields forced investors to reassess their positions again after a steep retreat from a record peak earlier this week, which put bullion on course for its first weekly fall since early June, Reuters reported.

Spot gold was down 0.1 percent at $1,952.01 an ounce. Bullion declined 4 percent so far this week, its biggest weekly percentage fall since early March. US gold futures fell 0.5 percent to $1,960.50.

Benchmark US 10-year yields are up nearly 15 basis points this week in the sharpest jump since early June, as the US Treasury flooded the market with supply.

Higher yields tend to lift the dollar and pressure the yellow metal, which costs to store and insure but does not pay interest. The dollar drifted higher on strong US jobs data, denting gold's appeal, the report said.

“Gold prices may remain volatile going ahead while the trend seems flat to negative. The prices may find support at $1,940 level while resistance is placed at 1,960 levels,” Trivedi said.

On the domestic front, gold prices were also under pressure as Indian rupee traded with marginal gains against the US dollar amid buying in the domestic equity market.

“On MCX, support for gold is placed at Rs 52,150-52,400 level while resistance is seen at Rs 52,700-52900 level,” Trivedi added.

(Disclaimer:

The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)

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