Gold and silver fell in Indian markets today, a day after huge gains. Bullion futures were down 0.05% on MCX 51,790 per 10 grams while silver declined 0.5%. 67,863. In the last session, Sleep had jumped 1,115 per 10 grams rose to a 16-month high in the form of bullion, while silver rose 2,500 per kg. In international markets, gold slipped today amid a stronger US dollar weighing on safe-haven demand for the precious metal as the Russia-Ukraine conflict intensified.
Spot gold was down 0.4% at $1,935.38 an ounce. The dollar index touched a 20-month high on Tuesday, making gold less attractive to holders of other currencies. Gold jumped 6% last month as the precious metal is considered a safe store of value in times of such uncertainties and also a hedge against high inflation.
Among other precious metals, spot silver fell 0.9% to $25.15 an ounce today.
“Gold and silver rally on safe haven appeal Russia invades Ukraine, Both the precious metals also rose amid heavy selling in global equity markets and record jump in international crude oil prices,” said Rahul Kalantri, VP Commodities, Mehta Equities.
“We expect gold and silver prices to remain positive and any further downside in prices will be a buying opportunity at lower levels. Gold may test $1970 per troy ounce and silver $26.20 an ounce in the coming sessions. Gold’s support is at $1922-1908, while resistance lies at $1955-1970 per troy ounce. Silver has support at $25.20-24.84, while resistance lies at $25.88-26.20 per troy ounce. gold support in rupee 51,358–50,900, while resistance is at 52,075-52,334. support for silver 66,983- 65,786 while at resistance 68,913-69,646,” he said.
Gold traders await Federal Reserve Chairman Jerome Powell’s testimony before the US Congress today and tomorrow for further clarity on interest rate hikes amid tensions and rising inflation in Ukraine.
Meanwhile, gold-backed ETFs are seeing strong inflows amid the Ukraine crisis. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.3% on Tuesday to 1,042.38 tonnes – the highest since July 2021. (with agency input)
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