Among other precious metal, silver slipped 0.5% to $22.39 per ounce while platinum slid 2.7% to $954.32.
“COMEX gold trades mixed near $1875/oz as support from safe haven buying amid increasing growth worries and inflation concerns amid persistent supply risks associated with Russia is countered by firmness in US dollar and higher bond yields. Growth worries and tightening expectations have caused a shift to the safety of US dollar and this has pressurised gold," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
"However, with increasing challenges to global economy, safe haven buying may keep a floor to gold price and we may see a move back towards $1900/oz level."
Rahul Kalantri, VP Commodities, Mehta Equities, expects US bond yields to remain at elevated levels because of expectations that monetary policy from the Fed and other major central banks will be tightened further. This is going to hold gold back from going too high in the medium term, he says.
“Today, trading in bullion will be volatile. Gold has support at $1855-1840 and resistance at $1892-1907. Silver has support at $22.05-21.80, while resistance is at $22.62-22.80. In rupee terms, gold has support at ₹50,650–50,310, while resistance is at ₹51,210–51,550. Silver has support at ₹61,800-61,500, while resistance is at ₹62,850–63,410."
The dollar was headed for a fifth winning week while benchmark US Treasury yields held near their highest levels since November 2018. Non-yielding gold tends to fall out of favour among investors when interest rates rise.
Investors now eye U.S. non-farm payrolls data for April to assess its impact on monetary policy. Fed on Wednesday raised its benchmark rate by half a percentage point, the most in 22 years.
Equities tumbled as investors expressed concerns that rising interest rates could hurt global economic growth. (With Agency Inputs)
