OPEN APP
Home / Markets / Commodities /  Gold prices today struggle. Why the yellow metal is stuck in a range
Listen to this article

Gold and silver rates today struggled in Indian markets amid a firm US dollar. Gold futures on MCX were steady at 51,623 per 10 gram while silver was flat at 66330 per kg. In international markets, spot gold was down 0.2% at $1,922.08 per ounce as US dollar hovered near a two-year high against a basket of currencies after Fed minutes showed the central bank is preparing to move aggressively to head off inflation. 

In rupee terms, gold has support at 51,240–50,980, while resistance is at 51,840–52,140, says Rahul Kalantri, VP Commodities, Mehta Equities. Silver has support at 65,810- 65,420 while resistance is at 66,690–67050, he added.

A stronger US dollar dents the safe-haven metal's appeal. The benchmark U.S. 10-year Treasury yield hovered close to multi-year highs hit in the previous session, increasing the opportunity cost of holding non-yielding bullion. Among other precious metals, spot silver edged 0.2% lower to $24.38 per ounce while platinum shed 0.1% to $952.32 and palladium was up 0.5% at $2,208.87. 

Bullion has been witnessing a lackluster performance over the last six trading sessions. The precious metal is displaying back and forth moves in a range of $1,915.22-1,949.86, while silver moves in range of $24-$25.05. It is worth noting that the release of the Federal Open Market Committee (FOMC) minutes and speeches from various Federal Reserve (Fed) policymakers this week have failed to put any substantial impact on gold prices," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

The Fed minutes, released on Wednesday, signaled half-point rate increases are possible, and that the Fed is considering reducing its massive bond holdings at a maximum pace of $95 billion a month to tighten financial conditions.

“However, Russia-Ukraine conflict, higher inflation pressure and slower economic growth prospects are supporting precious metals. We expect gold and silver could see buying in dip. Gold has support at $1908-1896, while resistance at $1933-1944. Silver has support at $24.05- 23.84, while resistance is at $24.52-24.82".  (With Agency Inputs)

 

Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Post your comment

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout