BackGold rates today drop after jumping ₹1,100 per 10 gram, silver rates slip
In the previous session, gold had jumped ₹1,115 per 10 gram while silver had surged ₹2,500 per kg.
PremiumGold and silver today ticked lower in Indian markets, a day after recording huge gains. On MCX, bullion futures were down 0.05% to ₹51,790 per 10 gram while silver dipped 0.5% to ₹67,863. In the previous session, gold had jumped ₹1,115 per 10 gram as bullion surged to a 16-month high while silver had risen by ₹2,500 per kg. In international markets, gold slipped today amid a stronger US dollar weighed on the safe-haven demand of the precious metal fuelled by the intensifying Russia-Ukraine conflict.
Spot gold was down 0.4% to $1,935.38 per ounce. The dollar index held close to a 20-month high touched on Tuesday, making gold less attractive for holders of other currencies. Gold had jumped 6% last month as precious metal is considered a safe store of value during times of such uncertainties and also a hedge against higher inflation.
Among other precious metal, spot silver fell today 0.9% to $25.15 per ounce.
"Gold and silver have gained due to safe-haven appeal as Russia invaded Ukraine. Both precious metals also gained amid heavy sell-off in the global equity markets and record surge in the international crude oil prices," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“We expect gold and silver prices to remain positive and any decline in the prices would be an opportunity for buying at lower levels. Gold could test $1970 per troy ounce and silver could also test $26.20 per troy ounce in the upcoming sessions. Gold has support at $1922- 1908, while resistance at $1955-1970 per troy ounce. Silver has support at $25.20-24.84, while resistance is at $25.88-26.20 per troy ounce. In rupee, gold has support at ₹51,358–50,900, while resistance is at ₹52,075–52,334. Silver has support at ₹66,983- 65,786 while resistance is at ₹68,913–69,646," he added.
Gold traders are also awaiting Federal Reserve Chairman Jerome Powell's testimony before the US Congress today and tomorrow for more clarity on interest rate hikes amid the Ukraine tensions and soaring inflation.
Meanwhile, gold-backed ETFs have been seeing strong inflows amid the Ukraine crisis. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 1.3% to 1,042.38 tonnes on Tuesday - their highest since July 2021. (With Agency Inputs)
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