Active Stocks
Sat Mar 02 2024 12:29:56
  1. Tata Steel share price
  2. 155.30 3.53%
  1. HDFC Bank share price
  2. 1,430.50 -0.05%
  1. State Bank Of India share price
  2. 773.40 0.53%
  1. ICICI Bank share price
  2. 1,084.60 -0.21%
  1. Axis Bank share price
  2. 1,095.00 -0.40%
Business News/ Markets / Commodities/  Gold prices down 1,000 from recent highs, falls for third day in a row

Gold prices down ₹1,000 from recent highs, falls for third day in a row

Gold rates in India had crossed ₹55,000 per 10 gram before seeing some selling pressure

Gold prices today struggled to hold ₹54,000 per 10 gramPremium
Gold prices today struggled to hold 54,000 per 10 gram

Gold prices fell for the third day in a row in Indian markets as sentiment remained weak after Fed signalled that interest rates could remain higher for a long period. On MCX, gold edged lower to 54026 per 10 gram while silver fell 0.3% to 67,610 per kg. Earlier this week, the yellow metal rose to nine-month highs when it rose above 55,000 per 10 gram.

In global markets, spot gold traded higher near $1,780.63 per ounce but was down over 1% so far this week. A weaker dollar supported gold prices, making bullion cheaper for overseas buyers. The dollar index was down 0.3%.

On Thursday, a day after Fed hiked rates by 35 bps, “ECB hiked deposit rate by 50 bps along expected lines to 2% but ECB chair Lagarde was extremely hawkish in the press conference. She pushed back against any expectations of a pivot and said higher inflation is likely to persist and that the ECB needed to do more than what the market was pricing in," IFA Global said in a note.

Bank of England also hiked rates by 50bps as well along expected lines to 3.5%.

“The U.S. retail sales and core retail sales data released on Thursday were also below expectations and also pushed both precious metals lower. We expect bullion prices to remain volatile in today’s session. Gold has support at $1768-1755 while resistance is at $1792-1805. Silver has support at $22.80-22.55, while resistance is at $23.48-23.65. In rupee terms, gold has support at 53,820-53,650, while resistance is at 54,280, 54,450. Silver has support at Rs67,250-66,880, while resistance is at 68,520–68,980," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

The RBI has announced that the latest tranche of sovereign gold bonds will open from December 19 to December 23, 2022, for subscription. The RBI issues gold bonds on behalf of the Government of India. The issue price will be fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA), for the last three working days of the week preceding the subscription period.

"Gold prices felt the heat as hawkish statements from central banks acted as profit booking from tables. 53,000 shall act as an important support zone for Gold and 54,500 as resistance in the December series," said Jateen Trivedi, VP Research Analyst at LKP Securities. (With Agency Inputs)

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Commodity News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 16 Dec 2022, 09:58 AM IST
Next Story footLogo
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie