BackGold rates today fall for fourth day in a row in Indian markets
Rising US Treasury yields and stronger US dollar put pressure on gold rates
PremiumGold prices today slipped in Indian markets as a stronger US dollar and firm US bond yields put pressure on the yellow metal in global markets. On MCX, gold futures dipped 0.02% to ₹51,360 per 10 gram while silver fell 0.2% to ₹66,075 per kg. In global markets, gold rates eased today as hawkish comments from US Federal Reserve officials boosted the dollar and Treasury yields to multi-year highs.
Spot gold was down 0.2% at $1,920.87 per ounce. A stronger dollar makes gold less attractive for other currency holders while higher yields increase the opportunity cost for holding non-yielding bullion.
The US dollar index today edged higher to near two-year peak of 99.570 after a top Fed official said she expected a combination of rate increases and a rapid balance sheet runoff to bring U.S. monetary policy to a "more neutral position" later this year, with further tightening to follow as needed. US Treasury yields also hit multi-year highs on Wednesday.
Among other precious metals, spot silver edged 0.1% lower to $24.28 per ounce while platinum shed 0.3% to $964.90.
Rising US Treasury yields and expectations for more aggressive monetary policy tightening by the Federal Reserve offset safe-haven demand for bullion spurred by possible new Western sanctions on Russia, says Rahul Kalantri, VP Commodities, Mehta Equities.
“The dollar index and U.S. bond yields rise after Federal reserve Governor Lael Brainard said that she expects methodical rate hikes and rapid reductions to the central bank’s balance sheet to bring U.S. monetary policy to a more neutral position. After her statement, the dollar index crossed 99 marks again while the benchmark 10-year bond yields crossed 2.55% and put pressure on gold & silver. However, talks of more economic sanctions on Russia by western countries and higher global inflation pressures are supporting precious metals at lower levels," he added.
Gold technical outlook
“Gold prices have support at $1905-1892, while resistance at $1932-1944. Silver has support at $24.05- 23.80, while resistance is at $24.55-24.88. In rupee terms gold has support at Rs50,950–50,680, while resistance is at ₹51,540–51,720. Silver has support at ₹65,750- 65,320 while resistance is at ₹66,760–67150," Rahul Kalantri of Mehta Equities added. (With Agency Inputs)
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