OPEN APP
Home / Markets / Commodities /  Gold prices today fall lowest in 2 weeks, silver rates see big drop
Listen to this article

Gold and silver rates today fell sharply in Indian markets as a stronger US dollar put pressure on the yellow metals. On MCX, gold futures were down 0.6% to near two-week low of 50,545 per 10 gram while silver dropped 1% to 60575 per kg. In global markets, gold fell to its lowest in two weeks as a stronger dollar makes bullion more expensive for buyers holding other currencies. Spot gold dipped to $1,835.28 per ounce. 

“COMEX gold trades modestly lower near $1840/oz weighed down by rise in US dollar index and bond yields. Despite increasing debate about Fed’s monetary policy, some upbeat US economic readings added to expectations that Fed may continue with its monetary tightening stance. Also weighing on gold price is improving outlook for Chinese economy while ETF outflows show weakening investor confidence. Gold may remain in a range near $1850/oz as global growth worries counter tightening stance but firmness in US dollar may keep pressure on prices," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Bullion is considered a hedge against inflation and as a safe-haven asset during times of political uncertainty, but the Fed hiking short-term U.S. interest rates to fight rising costs raises the opportunity cost of holding gold.

Gold and silver prices hit a near two-week low on Wednesday, as rising treasury yields and a strengthening U.S. dollar continued to weigh. Both precious metals are down by 0.50% to 1.20%. Gold price has given a downside break from its previous consolidation formed in a $1,846.20-1,864.16 range. The precious metal has turned extremely volatile as investors are bracing for a rise in the extent of the hawkish stance to be dictated by the Federal Reserve (Fed) in June," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“The dollar index and the U.S. 10-year bond yields rebounded again on Tuesday after hawkish comments of the U.S. Federal Reserve Governor Christopher Waller for raising interest rates in the upcoming policy meetings. He advocates for a 50 basis points rate hike in the upcoming policy meeting and also said that monetary tightening will continue until the inflation comes down."

“We expect both precious metals to remain volatile to negative in today’s session. Gold has support at $1832-1822, while resistance is at $1852-1865 per troy ounce. Silver has support at $21.40-21.20, while resistance is at $21.82-22.10. In rupee terms gold has support at 50,640–50,410, while resistance is at Rs50,080–51,350. Silver has support at Rs61,080-61,450, while resistance is at Rs62,380–62,910."

 

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout