Gold continues its slide, silver tumbles as traders book profits

NEW DELHI: Gold futures prices continued its slide after the duty cut while silver futures prices also saw profit booking after Reddit frenzy lost steam on Tuesday.

Silver prices rocketed as retail investors, egged on by messages on Reddit, pile into the market in an attempt to push up prices. The retail investment frenzy in silver has left dealers from the United States to Singapore scrambling for bars and coins to meet demand.

Gold futures on MCX were down 0.56 per cent or Rs 272 at Rs 48,448 per 10 grams. Silver futures dropped 2.20 per cent or Rs 1,620 to Rs 72,046 per kg.

“Gold prices attracted less investor interest over Silver jitters over Reddit buying saga. The yellow metal remains muted on lack of fresh triggers as investors are hoping for another stimulus announcement from the Biden administration,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

In the spot market, Gold in the national capital on Monday tumbled Rs 1,324 to Rs 47,520 per 10 gram on a day when the government announced cut in import duty on gold and silver. Silver, in contrast, jumped Rs 3,461 to Rs 72,470 per kilogram.

Trading strategy

“Gold prices are expected to trade in the current range with sideways to downtrend for the day. COMEX gold has important resistance at $1,876 per ounce and support at $1,848 per ounce. MCX Gold April futures support lies at Rs 47,900 and resistance at Rs 48,700 for the day,” said Patel.

Global markets

Silver prices dropped nearly 2 per cent on Tuesday, as investors locked in profits after the precious metal touched a near eight-year peak in the previous session.

Spot silver slipped 1.5 per cent to $28.54 an ounce by 0257 GMT, after jumping 7.3 per cent to hit its highest since February 2013 at $30.03 on Monday, as retail investors piled into the market following calls on social media in an attempt to push prices up.

Spot gold was steady at $1,860.36 per ounce. US gold futures shed 0.1 per cent to $1,861.90. Platinum declined 1 per cent at $1,115.86, while palladium added 0.4 per cent to $2,254.98.

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