Today’s gold prices are lower, and silver values are lower for the third day in a row.

Stronger dollar and higher bond yields weighed on gold. Meanwhile, inflows into gold-backed exchange traded showed some profit-taking at higher levels

In Indian markets today, gold fell, while silver fell for the third day in a row, following weak global cues. Gold futures on the MCX were down 0.32 percent to ₹48,520 per kg, while silver futures were down 0.4 percent to ₹72,073 per kg. Gold had reached a three-month high of ₹48,700 per 10 gram in the previous session. According to analysts at CapitalVia Investment Advisor, gold has support at ₹48000-47900 levels on the MCX, which if breached with heavy volume could lead to a drop to ₹47700 levels. Support for silver is found between ₹71050-70900.

Gold prices in foreign markets remained unchanged at $1,869.50 per ounce. Gold reached a near four-month high of $1,889.75 on Wednesday. Gold was weighed down by a stronger dollar and higher bond yields. Following the publication of the minutes from the Federal Reserve’s most recent monetary policy meeting, benchmark US Treasury yields remained above 1.664 percent.

At the Fed’s April 27-28 meeting, a number of policymakers thought it would be prudent to revisit asset purchases in future meetings if the US economy continued to grow rapidly. The opportunity cost of owning non-yielding bullion rises as interest rates rise. Chair Jerome Powell, however, said in a press conference following last month’s meeting that it was premature to begin talking about tapering.

Inflows into gold-backed exchange traded funds, on the other hand, showed some profit-taking at higher levels. The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, recorded a 0.5 percent drop in holdings to 1,031.27 tonnes on Wednesday, down from 1,035.93 tonnes the day before.

Silver fell 0.3 percent to $27.66, while platinum rose 0.2 percent to $1,193.32. Rising inflation expectations, as well as a revival of coronavirus cases in some countries, have reignited interest in gold as a hedge and haven asset, with bullion-backed exchange-traded funds seeing a rebound in holdings. Although policymakers in the United States have stated that they plan to keep their accommodative posture for the foreseeable future, any indications of a timetable for winding down extraordinary stimulus could weigh on gold.

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