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Gold prices in India extended losses today after a sharp fall intra-day fall in the previous session. On MCX, gold futures were down at 51,793 per 10 gram while silver rose 0.7% to 57,775 per kg. In the previous session, gold had slipped nearly 1,000 from intra-day highs, tracking weak global rates.  In global markets, gold prices edged lower today amid firm US dollar and Treasury yields. The solid US jobs data, released on Friday, has increased the odds of aggressive interest rate hikes by the US Federal Reserve. 

Spot gold was down 0.1% at $1,771.74 per ounce, after dropping 1% in the previous session. Among other precious metals, spot silver was flat at $19.87 per ounce, platinum fell 1.3% to $920.25, and palladium was steady at $2,125.68.

“COMEX gold trades little changed near $1790/oz as support from geopolitical tensions and China’s virus spread is countered by firmness in US dollar post robust US jobs report and hawkish comments from Fed officials. ETF flows also show lack of investor interest despite recent price gains," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

"Gold prices rallied sharply in last few days but seems to have lost momentum near $1800/oz level. We may see some correction as market players respond to US jobs report which makes a case for Fed to continue with aggressive rate hikes," he added. 

It is widely expected that that the Fed could continue with the pace of 75-basis-point rate hikes for its next policy decision in September.  Though gold is seen as a hedge against inflation, rising US interest rates and a firm dollar dampen bullion's appeal.

Gold traders will focus this week on US inflation data due on Wednesday that could offer more clues on the Fed's rate hike path.

Axis Securities has a neutral stance on gold, recommending a buy-on-dips strategy. “Based on the current macroeconomic development, Gold will continue to be a preferred asset class until uncertainties over the Russia-Ukraine conflict fades and will continue to attract investments as a proven hedge against other asset classes. We continue our Neutral stance on Gold and recommend a ‘Buy-on-Dips’ strategy," the brokerage said. 

 

 

 

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