Gold and silver are set to close in the negative territory for the fourth consecutive week. While the price of gold has fallen by 3.5 percent this week, silver has declined by 7 percent.
The support level for gold now is $1,820 per ounce with the precious metal holding up at the Rs 50,000 mark in the Indian markets. Silver has broken below $21 per ounce in the international market and is trading at Rs 58,700 a kg in India.
The dollar index is at around 20-year high and the hawkish statements on the monetary stance from the US Federal Reserve and recovery in the global equity markets seem to be weighing on the precious metal prices. Gold is trading around three-month low whereas silver is trading at around two-year low.
The market believes that if gold breaks below $1,820 per ounce in the international market, its next support level would be $1,780 per ounce.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.