Gold prices today fall to near two-week lows, silver rates struggle

  • Gold rates have been been trading in a narrow range over the last one month amid rate hikes by central banks

Livemint
Updated24 Jun 2022, 10:25 AM IST
Gold prices struggled at  <span class='webrupee'>₹</span>50,510 per 10 gram on MCX and silver rates were marginally higher at  <span class='webrupee'>₹</span>59,510 per kg.
Gold prices struggled at ₹50,510 per 10 gram on MCX and silver rates were marginally higher at ₹59,510 per kg.(REUTERS)

Gold and silver prices in India struggled today amid weak global cues. On MCX, gold futures declined to near two-week lows of 50,510 per 10 gram. Silver futures were marginally higher at 59,510 per kg.  In global markets, gold rates were flat at $1,824.72 per ounce and remained on course for their second straight weekly decline. So far this week, gold prices have dropped about 0.9%, on worries of aggressive rate hikes by global central banks to counter runaway inflation. Among other precious metals, spot silver rose 0.4% to $21.02 per ounce but is set for weekly loss.

“Recovery upticks in gold can be seen as long as the support of $1815 remains undisturbed. A direct drop below the same would trigger further weakness,” domestic brokerage Geojit said in a note. 

For silver, “expect a choppy trade inside $22.50-20.50 levels and breaking any of the sides would suggest fresh directional moves,” the brokerage added. 

Benchmark US 10-year Treasury yields firmed today, limiting demand for safe-haven gold. Higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest.

A strong dollar makes greenback-priced gold more expensive for buyers holding other currencies.  Inflows into gold ETFs have been mixed recently. The holdings of SPDR Gold Trust,the world's largest gold-backed exchange-traded fund, fell 0.81% to 1,063.07 tonnes on Thursday from 1,071.77 tonnes a day earlier.

Gold has been has been trading in the range of US$ 1810-1875 for the past one month. “Gold is trading in a narrow range due to two reasons - the persistent inflationary pressures, and the rising rates,” says Emkay Wealth Management.

“Inflation has become a key risk to growth for economies across the globe. Historically, gold prices tend to gain during phases of high inflation but there is a reason that is restricting the gains for gold. The stubborn and sticky inflation has forced central banks across the globe to hike rates aggressively and unwind the easy monetary policy to reverse the excess liquidity in the system. The Fed has turned more aggressive based on persistently high inflation numbers. This has rendered strength to the US Dollar, and the currency yields are rising too with hike in policy rates,” the wealth management firm added. 

Emkay expects gold prices to trade in narrow range until clarity in the US on interest and other monetary policy measures. “The support levels for gold is at 1760 and 1730 levels, and the upside may be capped at 1930/40 levels in the near term,” it added. 

 

 

 

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:24 Jun 2022, 10:25 AM IST
HomeNewsIndiaGold prices today fall to near two-week lows, silver rates struggle

Most Active Stocks

Tata Steel

158.10
03:28 PM | 19 JUL 2024
-8.25 (-4.96%)

Tata Power

413.85
03:28 PM | 19 JUL 2024
-16.15 (-3.76%)

Bharat Electronics

306.70
03:28 PM | 19 JUL 2024
-6.8 (-2.17%)

Zee Entertainment Enterprises

137.50
03:28 PM | 19 JUL 2024
-4.95 (-3.47%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Rail Vikas Nigam

612.10
03:22 PM | 19 JUL 2024
25.75 (4.39%)

Tata Teleservices Maharashtra

101.59
03:22 PM | 19 JUL 2024
4.16 (4.27%)

One 97 Communications

457.75
03:22 PM | 19 JUL 2024
12.7 (2.85%)

Cello World

979.00
03:29 PM | 12 JUL 2024
25.7 (2.7%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    76,272.001,173.00
    Chennai
    76,124.001,465.00
    Delhi
    75,533.001,021.00
    Kolkata
    75,089.00-450.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanBudget