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Gold prices are struggling today after a significant drop, while silver rates are falling.

After a sharp drop the previous day, gold and silver prices remained unchanged today. On the MCX, silver futures dipped to 64,658.00 per kg, while gold futures climbed to 46,980 per 10 gramme. Gold and silver both fell roughly 1% in the previous session, following weak global cues. Gold was pushed down by a stronger US dollar and rising US bond yields.

Gold fell below the crucial $1,800 per ounce threshold on global markets, as a stronger US currency and higher bond yields harmed the precious metal's safe-haven appeal. After dipping to $1,791.90 in the previous session, spot gold was unchanged at $1,796.03 per ounce.

Unless $1,835 is taken out, there is a chance of corrective selling pressure in gold, says domestic brokerage Geojit. 

On Tuesday, the US dollar index surged to a one-week high of 92.543, while the benchmark 10-year Treasury note jumped to 1.385 percent. The opportunity cost of holding non-interest bearing bullion rises as yields rise.

Silver increased 0.1 percent to $24.32 per ounce, while platinum increased 0.3 percent to $1,001.36 per ounce.

There is a risk of further pullback as long as silver remains above $23.70, but a direct drop below that level is a sign of weakness, according to Geojit.

Gold is also being weighed down by dwindling investor interest in the metal despite continued equities market gains, according to analysts. Last week, gold holdings in the SPDR ETF, the world's largest gold exchange fund, fell to an April 2020 low of 998.52 tonnes, according to Kotak Securities.

The US dollar may be affected by the outlook for monetary policy of the Fed and other central banks, causing bumpy trade in gold, but increasing global uncertainty may keep prices maintained, according to the brokerage.

While central banks remain the focus, economists say that gold is supported by an uneven global economic recovery and persistent virus concerns.

Traders will be awaiting the conclusion of the European Central Bank's meeting this week. Given the surge in inflationary pressure, the European Central Bank is expected to hold its monetary policy meeting this week, and there is growing speculation that the central bank could begin bond tapering soon.