Gold price in India today broke key levels of 50,000 amid the recent downtrend. Gold futures on MCX closed at two-month low, down 0.3% 50,090 per 10 grams after falling 49,971 at a day’s low. Silver futures fall 54986 per kg. In global markets, the yellow metal has come under continued pressure over the past month as investors turned to the US dollar amid hopes of another major rate hike by the Fed later this month.
Higher interest rates and bond yields increase the opportunity cost of holding non-yielding bullion.
Impact on gold prices in India 52,300 Last week, the government increased the import duty. Now the prices have improved more than 2,000 in a few days, tracking the falling global prices. Bullion dealers told Reuters the improvement was holding back domestic retail consumers.
,Sleep Support is at $1700-1688, while resistance lies at $1724-1734. Silver has support at $18.00-17.82, while resistance lies at $18.60-18.78. Gold has support in rupee terms 50,050–49,750, while resistance lies at Rs 50,560–50,740. Silver has support at Rs 54,450-53,750, while resistance is at Rs 55,780-56,510.
In global markets, gold was down 0.3% at $1,704.59 an ounce today as the dollar neared a 20-year high against a basket of currencies. Analysts say that the fall in gold prices among foreign investors is reducing demand for gold due to the continuous rise in the US dollar.
Among other precious metals, spot silver fell 1.1% to $18.18 an ounce.
COMEX gold trading moderately declined near $1710/oz after testing August 2021 lows in the previous session. Amid halving in gold US Dollar Index As market players assess the way forward for the Fed’s rate hike. US inflation data strengthens the case for the Fed to consider an even bigger move, although most central bank officials maintain support for a 75 basis point rate hike,” said Ravindra Rao, VP- Kotak Securities. Head of Commodity Research in
“Gold is also under pressure due to concerns about Chinese consumer demand, improving commodities and ETF outflows, among other factors. Gold has so far managed to stay at the level of $1,700 an ounce. However, the general bias is downwards. And maybe until we see a substantial correction in the US dollar index,” he said. (with agency input)
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