In view of the weak trend in the global markets, gold and silver prices fell in the Indian markets today. Gold futures fall on MCX 50,622 per 10 grams while silver fell 0.5% 54,865 per kg. In global markets, gold held steady near $1,725.17 an ounce, supported by a marginal decline in the US dollar and lower Treasury yields. This week, traders will turn their attention to the two-day policy meeting of the US Federal Reserve that ends on Wednesday. Market observers are expecting a 75 bps rate hike.
Among other precious metals, spot silver was steady at $18.58 an ounce, platinum declined 0.2% to $871.43 and palladium slipped 1.5% to $2,001.62.
After rising above the $2,000-per-ounce level in early March due to the Ukraine war, gold has corrected over $250, or more than 12% amid a rate hike by the Fed and a stronger dollar. Gold was affected in Indian markets 55,200 in mid-March before succumbing to selling pressure.
“comex” gold rates Trading marginally lower near $1724/oz as the US Dollar index and bond yields halted after a recent correction. Market players are now in the position of the Fed’s decision on Wednesday. Expectations of a rate hike of 75 basis points have already been taken into account and market players want more clarity if the Fed can slow the pace of further rate hikes to address the challenges to the economy. Ravindra Rao, VP- Head Commodity Research, Kotak Securities.
,Sleep Weak investor demand and concerns about consumer demand in India and China are also under pressure. Gold has bottomed out but may remain directional ahead of the Fed’s decision but general bias is still weak unless the US central bank gives a clear signal to slow rate hikes.
Last week, the European Central Bank raised interest rates by 50 bps to tackle rising inflation. Although gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion.
“Gold has support at $1712-1700, while resistance is at $1738-1747. Silver has support at $18.42-18.30, while resistance is at $18.95-19.15. Gold has support in rupee terms. 50,540–49,310, while resistance lies at Rs 50,860–50,990. Silver has support at Rs 54,650-54,210, while resistance is at Rs 55,580-56,110.
(with agency input)
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