Gold prices today see huge fall after rising above ₹55,000 per 10 gram
1 min read 09 Mar 2022, 04:04 PM ISTGold rates today were under pressure after equities staged a rebound
PremiumGold saw a sharp fall in Indian markets after rising above ₹55,000 in early session as risk sentiment improved, despite ongoing concerns that the fallout from Russia’s invasion of Ukraine will further fuel inflation and hurt economies. The precious metal futures were down 1.5% to ₹53,342 per 10 gram on MCX after hitting ₹55,190 in early session. Silver too was down 0.15% to ₹71,278 per kg, having hit ₹73,046 earlier in the session.
Equities staged a sharp rebound today after Ukrainian President Zelenskyy announced the country was no longer interested in NATO membership, analysts said. Investors bought beaten-down shares in the hopes of de-escalation in Russia-Ukraine crisis.
In international markets, spot gold fell 2% but held above to $2,000 an ounce while Brent crude fell 0.5% to $127.34 a barrel. Bullion is still up about 10% this year as investors seek a hedge against the threat of an inflationary shock to the global economy.
Palladium fell 3.9% in continued volatile trading. Prices surged to a record this week on concerns over potential supply disruptions from Russia, which accounts for about 40% of all mined production.
European stocks were sharply higher in early trade while Indian equities settled over 2% higher. Oil prices took a breather from their rally, a day after President Joe Biden banned fossil-fuel imports from Russia. Treasuries slid, and dollar weakened for the first time in five days, as haven demand waned. Futures on the S&P 500 rose 1.7% while Nasdaq 100 futures jumped 2.2%.
Recent data showed gold ETFs in India continued to witness a redemption for the second month in a row. While the redemption figures stood at a high ₹618 crore in January and it reduced to ₹493 crore last month. Analysts said investors seem to be booking profits by redeeming their investments, given the uptick in gold prices. (With Agency Inputs)
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