Gold prices today fall for second day, silver rates go down – Mint

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Gold and silver rates today struggled in Indian markets as the news of a potential summit between US President Joe Biden and Russian counterpart Vladimir Putin weighed on the safe-haven appeal of gold. On MCX, gold futures slipped to 50,070 per 10  gram while silver fell 0.4% to 63,659. In global markets, spot gold fell after U.S. President Joe Biden accepted in principle a summit with Russia’s Vladimir Putin over the Ukraine crisis.  

Spot prices slipped 0.2% to $1,893.80 per ounce, retreating from eight-month highs of $1,908, high hit earlier in the session.  Analysts say that gold may remain volatile as market players react to development relating to the Ukraine crisis. 

“President Biden accepted in principle a meeting with President Putin if an invasion hasn’t happened. We are always ready for diplomacy. We are also ready to impose swift and severe consequences should Russia instead choose war,” the White House said.

But the Biden administration warned: “Currently, Russia appears to be continuing preparations for a full-scale assault on Ukraine very soon.”

Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said: “COMEX gold hit a fresh June 2021 high near $1910/oz but retreated to trade little changed near $1899/oz as market players continued to react to development relating to Russia. Risk sentiment stabilized somewhat as US and Russia agreed to hold talks over Ukraine. However tensions prevail as US has maintained that Russian attack may happen soon.”

He added: “Amid other factors, mixed comments from Fed officials has also kept gold prices choppy. However, general bias may be on the upside as tensions are unlikely to ease soon.”

Among other precious metals, spot silver fell 0.7% to $23.79 per ounce while  platinum rose 0.3% to $1,070.29. 

Technically, “consistent trades above $ 1910 required to trigger major rallies. A direct drop below $1840 is a weak signal,” domestic brokerage Geojit said in a note. 

For silver, “consistent trades above $24 would trigger further rallies. Else, there are chances of choppy trading session for the day,” the brokerage added.

(With Agency Inputs)

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