Gold price today August 9 | Yellow metal nosedives by Rs 1,175/10 gm; check rates in Delhi, Mumbai, Chennai

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Gold and silver prices nosedived on August 9 in early trade as the yellow metal dropped to record lows due to global selloff, witnessing a fall of more than 2.4%. Price of the yellow metal (24 carat) declined by a record Rs 1,175 to Rs 46,556/10 gm from Rs 47,731/10 gm, according to the rate provided by the Indian Bullion and Jewellers Association (IBJA) while 22 carat gold was being traded at Rs 42,645/10 gm today as against Rs 43,722/10 gm on August 6. 

Silver also slumped by a record Rs 3,000/kg amid sluggish demand among the trading community across the globe.

On MCX, gold futures fell 1.3% or Rs 600 to Rs 46,029 per 10 gm. Silver, too, shed 1.6% or Rs 1,000 to Rs 63,983 per kg.

“Gold prices tumbled today after stronger than expected employment data in US while US gold futures are trading with highly negative sentiments. In opening tick today, however, it recovered to some extent. The outlook is bearish for safe heaven as it faces strong fundamental headwinds including rising dollar and bond yield,” said Sandeep Matta, founder, TRADEIT Investment Advisor.

Market sentiments are highly negative for the precious metal. However, we are nearing the lower trading range of gold where longer term investors will find the suitable risk reward, added Matta.

Global scenario

In global markets too, gold rates slumped by as much as 4.4% today as better-than-expected US jobs data fueled fears that the Federal Reserve would raises rates quicker than expected.

Spot gold was down 2.4% to $1,722.06 per ounce after touched $1,684.37 earlier in the session. Silver was down 2.6% at $23.70 after slumping much as 7.5% earlier in the session, confirmed a bullion trader.

“The price action in the gold market has turned from bad to worse as the precious metal dropped to a new low for the year at the start of the Asian trading session. However, some analysts see the price action as a major buying opportunity as they expect central banks will be slow to tighten monetary policy. Although the precious metal is well off its lows, it is still seeing some selling pressure.” said Amit Khare, AVP- research commodities, Ganganagar Commodities Ltd.

Silver down at Rs 64,000 level

After crossing the Rs 68,000 level on July 27 and August 3, silver price has suffered the sharpest-ever drop since December 2020.

On August 9, silver spot price dropped almost Rs 3,000/kg. In early trade on Monday silver sharply dropped by Rs 2,965/kg and reached Rs 64,024/kg from Rs 66,990/kg on August 6.

Traders confirmed that this is the highest ever drop in spot silver price almost in the past 10 months.

“Since Friday morning, gold prices have lost $76, where silver slumped as much as 6% over the last 10 days, this is the one of their biggest losses since markets were first roiled by the Covid-19 pandemic in early 2020. Better-than-expected employment data sparked the latest selloff in gold. In the last trade a huge sell off was seen in bullions due to US monthly payroll data, which may continue today. Gold and silver may give gap down opening, traders should wait for the best opportunity to invest in gold and silver. Prices are in oversold zone so they should avoid fresh short and try to invest in evening sessions only,” Khare added.