Gold price today 17 September 2021: Yellow metal tumbles by Rs 506/10 gm; check rates in Delhi and Mumbai
According to IBJA data, gold price has fallen by almost Rs 1,100/10 gm and silver price by Rs 2,000/kg in the past two days.
Due to multiple overseas factors, gold and silver prices again witnessed a sharp drop on September 17 in early trade. The price of the yellow metal (24-carat variant) declined by Rs 506 to Rs 46,333/10 gm from its previous closing price of Rs 46,839/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA). The 22 carat type of gold was being traded at Rs 42,441/10 gm today as against Rs 42,905/10 gm on September 16. This variant is down by Rs 464/10 gm.
“The precious metal had a meltdown in the aftermath of better-than-expected US retail sales data which is one of the major parts of measuring US economic strength. A strong retail data could trigger a more hawkish commentary from Fed which further means tapering and higher interest rates just got a little closer. Gold on MCX also cracked vertically and closed just above 46,000 turning all technical indicators in the favour of bears. The safe haven has fallen into danger zone and could anytime break 45,000 if the levels of $1,745/oz in US are not respected,” said Sandeep Matta, founder, TRADEIT Investment Advisor.
“Gold and silver prices were sharply lower in midday US trade on Thursday. Gold prices hit a four-week low and silver a five-week low. Stronger-than-expected US economic reports on Thursday evening, which rallied the US dollar index, helped to send gold and silver prices southwards. The near-term chart postures for both metals have deteriorated significantly this week,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
Silver down by almost Rs 1,500/kg
On the other hand, silver witnessed the highest-ever drop in price in September today, down by almost Rs 1,500/kg in the opening trade.
“We expected the fall of precious metals already in the past few days as the US Federal Reserve meeting is due on September 21-22. There is news floating in market that US central bank will withdraw its asset purchases. That is why overall trend of bullion is weak for the coming days,” said Manoj Dalmia, founder and director, Proficient Equities Private limited.
“Gold and silver showed a huge down side movement on both September 16 and 17 trading session. In the Multi-Commodity Exchange (MCX) October gold and silver both contracted between 1.75% and 3.5%. Yesterday, we saw huge selling pressure in bullion due to stronger-than-expected US economic reports. Now both metals are trading at oversold zone, which means any time we can see a good short covering rally in bullion,” added Khare.