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Gold prices today edged higher today in Indian market, hovering near one-week lows.  On MCX, gold futures were slightly higher at 50,917 per 10 gram while silver rose 0.24% to 61,085 per kg. In the previous session, gold had declined 0.3% while silver had slumped 1.1%. 

In global markets, gold extended losses today as firm US dollar weighed on bullion demand. Spot gold was down 0.2% at $1,836.67 per ounce as the dollar index, hovering near its highest level in about two decades. A firm dollar makes greenback-priced bullion less attractive for overseas buyers. Among other precious metals, spot silver fell 0.7% to $21.49 per ounce and platinum dipped 0.8% to $934.34, while palladium rose 0.8% to $1,830.81.

“MCX gold is facing resistance at 50 DMA, which is around 51,200. As long as it sustains below this level, it is likely to correct towards 50,400 in the coming days. Silver prices are expected to take cues from gold prices," ICICI Securities said in a note. 

“Concerns over geopolitical uncertainty lifted demand for safe haven assets. However, prospects of aggressive monetary tightening policy by the US Fed continued to pressurize bullion prices on higher side," it added. 

With today being a public holiday in the US, analysts expect lower volatility in gold. Stock and bond markets in the United States will be closed on Monday for the Juneteenth holiday.

“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," says domestic brokerage Geojit in a note. 

For silver, if “prices stays above the support of $21.50, upticks likely to continue the day. A direct drop below $20 would trigger major liquidation," it added. 

Gold has seen buying at lower levels. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.1% to 1,075.54 tonnes on Friday from 1,063.94 tonnes on Thursday.

The latest tranche of SGBs or sovereign gold bonds opened for open for subscription today. The issue will close on Friday. The issue price has been fixed at 5,091 per gram of gold. It will be the first issuance of the current fiscal.

The government in consultation with the Reserve Bank of India has offered a discount of 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. (With Agency Inputs)

 

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