Home / News / India /  Gold prices today regain 50,000 level but silver rates drop

Gold and silver prices were mixed today in Indian markets after a sharp jump in the previous session. On MCX, gold futures were up 0.17% to 50,331 per 10 gram while silver dropped 0.16% to 60831 per kg.  In Monday's trade, gold rose 0.8% while silver jumped nearly 3%, supported by a pullback in US dollar.  

“Gold price got some respite and managed to make some moderate gains in yesterday’s trade. The precious metal witnessed some bargain buying at sub-$1800 levels, closer to the support level of $1780 levels. This was largely due to a weakening dollar index. The dollar index has witnessed a steep fall after failing to sustain at its 19-year highs of 105, last week. The recent fall in the DXY could be the result of fully discounted proposed two 50 basis points interest rate hikes by the Federal Reserve (Fed) this year," said Pritam Patnaik, Head - Commodities, HNI, and NRI Acquisitions, Axis Securities.

“The trend looks positive for bullion in the short term. So, buy on dips will be the preferred way forward."

In global markets, gold rates were flat at $1,825.29 per ounce as the retreat in US dollar index offset pressure from rising US bond yields. Spot silver dropped 0.2% to $21.56 per ounce, platinum was flat at $945.76, and palladium fell 1.2% to $2,002.17.

The dollar index was steady today after falling from near 20-year highs on Monday. A weaker dollar makes gold more attractive for buyers holding other currencies. However, benchmark U.S. 10-year Treasury yields climbed, limiting demand for non-interest-bearing gold. 

Bullion is seen as a safe haven during economic crises and a hedge against inflation.

On Monday, gold slid to more than three month lows but reversed course later, tracking a fall in Treasury yields. 

Silver surged from recent lows as investors bet that China reopening will improve the demand for all hard commodities. (With Agency Inputs)





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