Gold prices today struggle near one-month lows, silver rises
Premium- Gold rates in India had tumbled to near one-month low in the previous session
Gold prices in India edged higher in early trade after tumbling in the previous session. On MCX, gold prices were up 0.19% to ₹51,489 per 10 gram while silver rose 0.56% to ₹65,480 per kg. In the previous session, gold had tumbled ₹850 or 1.6% per 10 gram to hit a near one-month low while silver had slumped ₹1,500 or 2.25% per kg.
In international markets, gold edged higher after hitting a near one-month low in the previous session. A slight retreat in US dollar supported the pullback in the precious metal , making greenback-priced gold cheaper. Benchmark US 10-year Treasury yields also eased, increasing the appeal of zero-yield gold. Spot gold was up 0.3% at $1,902.46 per ounce. Among other precious metals, spot silver gained 1% to $23.85 per ounce, platinum rose 0.6% to $926.00, and palladium advanced 2.1% to $2,189.18.
There are mounting concerns regarding demand for gold and silver and other commodities as Covid cases in China are spreading rapidly throughout the country, says Rahul Kalantri, VP Commodities, Mehta Equities Ltd..
“Although the war between Russia and Ukraine and global inflation continues to worsen, but market participants are now more focused on rising yields in U.S. debt instruments such as bonds and Treasuries, reducing the lustre of gold and silver. Despite of sharp corrections in Gold and silver price, Gold holds its key support level of $1880 per troy ounce and silver could also hold $23 and may give positive move in coming days as ahead of the marriage season and Akshaya Tritiya falling early next month," he said.
“Gold has support at $1885-1872, while resistance at $1912-1922. Silver has support at $23.42-23.20, while resistance is at $24.10-24.32. In rupee terms gold has support at ₹51,140–50,920, while resistance is at ₹51,780–52,050. Silver has support at ₹64,620- 64,410 while resistance is at ₹65,690–66,070," Mr Kalantri added.
In the first quarter of 2022, gold prices marked a quarterly gain as safe haven appetite in gold remained firm on geopolitical tensions, inflation fears and steady inflow in gold backed ETFs, says Geojit in a note. But a firm US dollar and bond yields dented appetite on gold, the brokerage said.