Gold prices fall today with the fall in futures prices on MCX 51,442 per 10 grams. In international markets, gold rates were stable today as investors watched the developments in Russia-Ukraine conflict. Spot gold was flat at $1,921.80 an ounce, hovering near the two-week low of the previous week.
“Gold and silver declined last week after the US Federal Reserve raised key interest rates by 25 basis points and indicated six more rate hikes in upcoming policy meetings. The chairman of the US Federal Reserve also expressed concerns about high inflation and low economic growth due to the Russo-Ukraine war. Coronavirus cases are on the rise again in most countries. Given the geopolitical tensions, rising cases of coronavirus, tightening of monetary policies by global central banks and rising global inflation, the precious metals may continue to remain volatile,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said.
“Gold has support at $1912-1900, while resistance at $1940-1952. Silver has support at $24.80-24.55, while resistance is at $25.62-25.90. Gold has support in rupee terms. 51,210–51,000, while resistance is at 51,720-52,000. Silver has support at Rs 67,400- 66,950 while it is at resistance. 68,480-68,950,” he said.
The Fed also raised its benchmark overnight interest rate by a quarter percent last week and forecast an aggressive plan next year to push borrowing costs to restrictive levels. Two of the Fed’s most staunch policymakers said on Friday that the central bank needed to take more aggressive measures to tackle inflation.
Higher interest rates increase the opportunity cost of holding non-interest paying gold.
Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,082.44 tonnes on Friday – a high since March 2021.
Among other precious metals, spot silver rose 0.2% to $25.00 an ounce, platinum rose 0.7% to $1,029.21. (with agency input)
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