Gold and silver edged lower in Indian markets, though slightly, tracking softness in global rates. On MCX, gold dipped to ₹52,050 per 10 gram after rising for three days while silver eased to ₹66,960 per kg. In international markets, gold rates eased today but losses were capped amid fresh concerns over Russia's attacks in eastern Ukraine. Spot gold was down 0.2% at $1,942.93 per ounce.
“Gold is pressurized by firmer US dollar and higher bond yields as Fed officials express support for faster monetary tightening to get inflation under control. However, supporting price are concerns about health of Chinese economy amid rising virus cases and disappointing economic data, continuing Russia-Ukraine fighting and persisting inflation concerns. ETF investors moved to sidelines awaiting fresh triggers. Gold has been stuck in a range and this may continue unless there are fresh triggers however with persisting geopolitical risks, prices may remain supported," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
The US dollar index was steady at 99.880 after topping 100 for the first time in nearly two years on Friday. A stronger dollar makes gold less attractive for other currency holders. Also on Friday, the the 10-year U.S. yield hit 2.73%, its highest in three years.
“Sentiment in the gold market remains positive as the precious metal continues to consolidate in the face of rising bond yields as the Federal Reserve looks to aggressively tighten its monetary policy through 2022. Gold has managed to consolidate between $1,900 and $1,950 an ounce, while silver is maintained in range of $24 and $25.65. While we don't see a breakout just yet, we expect prices to continue to test the top end of the range. Gold and silver are seeing safe haven demand amid Russia-Ukraine conflicts, slower global growth prospects and fear of rising global inflation," said Rahul Kalantri, VP Commodities, Mehta Equities.
“Gold has support at $1928-1912, while resistance at $1951-1962. Silver has support at $24.55- 24.40, while resistance is at $25.05-25.30. In rupee terms gold has support at ₹51,780–51,550, while resistance is at ₹52,340–52,510. Silver has support at ₹66540- 66,220 while resistance is at ₹67,690–68050,"said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Gold traders will be closely watching the developments in Ukraine crisis as Austria’s chancellor is set to meet President Vladimir Putin in Moscow today. Ukraine expects Russian forces to widen their offensive in the east of the country this week.
Among other precious metals, spot silver was flat at $24.75 per ounce and platinum rose 0.7% to $981.41. (With Agency Inputs)
