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Gold and silver rates edged lower in India amid a weak trend in global markets. On MCX, gold futures were down 0.09% to 51,050 per 10 gram while silver fell 0.73% to 61430 per kg. Gold rates in India are down about 1,000 so far this year. In international markets, gold edged lower today and the precious metal was set for its second straight monthly loss. Spot gold fell 0.3% to $1,849.92 per ounce, weighed by a rise in US bond yields and strengthening of US dollar.

In global markets, gold is down 2.4% so far on a monthly basis - its biggest loss since September. Spot silver today dipped 0.6% to $21.82 per ounce, and is down about 4.1% so far this month.

Though gold is seen as a safe-haven during economic crises, higher short-term US interest rates raise the opportunity cost of holding bullion while a while a stronger dollar makes greenback-priced bullion more expensive for overseas buyers.

In India, gold had hit a multi-year high of 55,600 in March this year and has struggled since then amid a jump in US bond yields and a strengthening US dollar.

“Gold and silver prices have dropped from their morning session's highs but continue to hold support near $1,850 an ounce. The latest weakness could be linked to the US dollar’s rebound from a one-month low. Overall, gold and silver prices are likely to witness further selling but the downside appears limited. Gold has support at $1838-1824, while resistance is at $1862-1874. Silver has support at $21.55-21.40, while resistance is at $22.10-22.35," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

In rupee terms, he added, “gold has support at 50,740–50,510, while resistance is at 51,180-51,350. Silver has support at 61,080-61,550, while resistance is at 62,680–63,110."

Equities across Asia were mixed today as inflation concerns were back to the fore. Oil jumped after the European Union agreed to pursue a partial ban on Russian oil in response to the invasion of Ukraine.

“Recently, the expectations of the aggressive Fed tightening have slowed providing some boost to the positive sentiments leading to the weaker demand for dollar. However, rising oil prices will once again push the risk aversion in the markets recalling the risk of higher inflation and Fed aggressive tightening pushing the dollar index up against the major currencies," said Amit Pabari, MD of CR Forex Advisors.

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