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Business News/ Markets / Commodities/  Gold prices today drop again, down 3,500 per 10 gram in just 5 days

Gold prices today drop again, down ₹3,500 per 10 gram in just 5 days

Gold rates today: Apart from hopes of a breakthrough in Ukraine-Russia peace talks, position squaring ahead of Fed’s rate hike decision has also pressurized prices, say analysts. 

Gold rates today: On MCX, futures dropped below ₹52,000 levels (REUTERS)Premium
Gold rates today: On MCX, futures dropped below 52,000 levels (REUTERS)

Gold and silver rates continued the recent drop after the precious metals fell more than 0.5% each in futures market in India. On MCX, gold futures were down 0.6% to 51999 per10 gram while silver fell 0.55% to 68470 per kg. In India, gold had jumped to 55,600 last week, before the current round of selloff.  In global markets, gold was under pressure today as bond yields climbed ahead of a key Federal Reserve meeting where policy makers are set to raise interest rates. Bullion had jumped close to all-time highs last week as Russia’s invasion of Ukraine and higher inflation boosted demand for the haven asset. 

The Ukraine crisis has led to sustained inflows into bullion-backed exchange-traded funds. Higher bond yields reduce the appeal of non-interest-bearing gold. Spot gold declined 0.4% to $1,943.09 an ounce, after touching $2,070.44 last week. Spot silver shed 0.4% to $24.92 per ounce, while platinum was down 0.1% to $1,029.16.

“Gold and silver have witnessed selling pressure on optimism of de-escalation of war between Russia-Ukraine. Both country officials’ discussions are going on for de-escalation of war and there is a hope they will reach some conclusion soon. Global equity markets gained and also pressured bullion. The U.S. Federal Reserve's two day policy meeting is starting from today and market consensus is that the U.S. Fed could raise interest rates in this meeting and the policy tone could be hawkish this time," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“We expect both gold and silver to remain volatile in today’s session as an anticipation of interest rate hike and hawkish policy statements from the Federal Reserve also triggered selling in precious metals. Gold has support at $1934-1920, while resistance at $1962-1980 per troy ounce. Silver has support at $24.70-24.35, while resistance is at $25.48-25.62. In rupee terms, gold has support at 51950–51680 , while resistance is at 52480–52740. Silver has support at 68050- 67335 while resistance is at 69220–70000," he added. 

Position squaring ahead of Fed’s rate hike decision has also pressurized prices, says Ravindra Rao of Kotak Securities. “Gold has come under pressure amid reduced safe haven buying amid efforts to resolve Russia-Ukraine issue peacefully. Gold may remain pressurized as market players position for Fed decision however a sharp fall is unlikely," he said. (With Agency Inputs)


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Published: 15 Mar 2022, 09:16 AM IST
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