Home / News / India /  Gold prices today stay near 2-month lows ahead of Akshaya Tritiya
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Gold and silver rates today remained under pressure in Indian markets amid a bearish global sentiment in precious metals. On MCX, gold futures were flat at 51,197 per 10 gram, after falling to near two-month lows of 50,800 in early trade. Silver rates slumped 0.6% to 64,895 per kg. The dollar index is at five-year highs. A stronger dollar makes greenback-priced gold less attractive for other currency holders.

In global markets today, gold prices fell to a 10-week low today with spot gold was down 0.1% at $1,885.06 per ounce. Spot silver was flat at $23.28 per ounce, platinum rose 0.6% to $923.17, and palladium gained 2.7% to $2,262.34.

The recent price correction in gold has boosted hopes of demand rising in India ahead of Akshaya Tritiya.

“The consumer demand remains robust. Most consumers purchase gold according to their budget. However, sales have been impacted in terms of volume. Although there is a higher number of customers coming to purchase jewellery, there’s a 20-25% decrease in sales volume in all the showrooms across the country. The inflation is affecting customers' buying power. But, consumer sentiment towards gold remains intact. People are buying gold jewellery despite the price rise. We expect the gold demand in the coming Akshaya Tritiya to surpass the demand of previous year," said Ahammed MP, Chairman, Malabar Gold & Diamonds.

“Gold has hit a two-month trough as the dollar rallied on expectations of aggressive monetary policy tightening by the U.S. Federal Reserve. Gold and silver plunged after strong gains in the dollar index and U.S. bond yields. The dollar index hit fresh two year highs i.e 103 level. The Euro zone is badly hitting as skyrocketing jump in energy costs as Russia halted gas supplies to Poland," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“Gold and silver are trading very near to its crucial support level gold $1800 and silver $23. If they sustain below these levels, gold and silver could be in bearish zone and would see some more pressure. Gold has support at $1872-1860, while resistance at $1900-1912. Silver has support at $23.00-22.78, while resistance is at $23.62-23.80. In rupee terms, gold has support at 50,880–50,720, while resistance is at 51,380–51,550. Silver has support at 63,940-63,415, while resistance is at 65,120–65,610," he added.

Also putting pressure on gold is elevated bond yields.  Benchmark 10-year U.S. Treasury yields also firmed as investors awaited further clarity on the "restrictive" policy the Fed plans to pursue next week to combat inflation by curbing economic growth.  Gold is highly sensitive to rising U.S. short-term interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion. However, gold is also seen as a safe store of value during economic and political crises. (With Agency Inputs)


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