Gold and Silver ETFs dipped 1% in Wednesday's trade due to a fall in precious metal prices. Analysts say gold is falling as fears of higher-for-longer US interest rate environment strengthened the US$
Investors withdrew nearly ₹3,000 crore from gold and silver ETFs in May as prices retreated from record highs, triggering profit booking and portfolio reallocation
In the international market, Gold fell on Wednesday, as oil prices rose on renewed hostilities between the US and Iran, fuelling concerns about inflation and interest rate hikes.
Analysts at Kedia Stocks and Commodities Research expect Silver prices to fall to $48.60 levels in the bear-case scenario. On the upside, they expect prices to zoom up to $170 in the next bull cycle.
In the international market, spot gold fell 0.2 per cent to $4,319.09 per ounce on rising fears of a US rate hike after a strong jobs report, while renewed hostilities in West Asia
Gold and silver ETFs jumped up to 7% after the government raised import duties on precious metals, triggering a sharp repricing in India's domestic bullion market
The government imposed a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess (AIDC), aiming to curb imports of the previous metals
MCX Silver opened with a slight gap up and is trading within the ₹280,000-₹282,000 zone, sustaining well above the ascending trendline as bullish momentum builds
In the international market, spot gold was up 2.5 per cent at $4,819.25 per ounce. Similarly, spot silver also jumped 5.5 per cent to $76.91 per ounce