Gold prices today struggled to edge higher after a sharp four-day fall. On MCX gold futures were up (spot gold price) 0.3% to ₹49,857 per 10 gram while silver advanced 0.6% to ₹67,239 per kg. In the previous session, gold had dropped over ₹1,000 or 2% per 10 gram while silver had slumped ₹1,500 or 2.1% per kg. The recent fall in global rates and import duty cut in Budget has pushed gold rates in India to near seven-month lows. In August gold had hit a record high of ₹56,200 per 10 gram.

In global markets gold prices edged up but still remained below the key psychological $1,800 level. (spot gold price)  Spot gold added 0.2%, at $1,795.30 an ounce after dropping over 2% in the previous session. A stronger US dollar and rising US Treasury yields dented gold's appeal.


"As prices cleared the support of $1800 sentiment turned into negative but, breaking $1764 is required (spot gold price)  to continue the momentum. Else, there are chances of slight recovery uptick for the day. A direct break above $1880 could negate the current momentum and lift prices higher," Geojit said in a note.

MCX gold faces resistance at ₹48,150 while has support at ₹45,750, it added.

Silver prices have dropped sharply in global markets since a GameStop-style retail frenzy sent them to(spot gold price)  their highest level in nearly eight years. On Monday, silver rates had zoomed to $30.03. Spot silver shed 0.1% to $26.27 an ounce.

Higher yields raise the opportunity cost of holding non-yielding bullion though gold usually gains from more stimulus, since it is considered a hedge against inflation.

A stronger US dollar makes gold more expensive for holders of other currencies. The dollar index has  (spot gold price)  risen to more than two-month peak while longer-term U.S. Treasury yields rose on anticipation of a large pandemic relief package from Washington and a stabilizing US labor market.

Analysts say that the passage of US President Joe Biden's $1.9 trillion COVID-19 may likely support gold at lower levels.