Gold, silver rates steady today. Check out latest prices
Premium- Both gold and silver prices are expected to remain volatile today
Gold and silver rates today struggled in Indian markets amid subdued global prices of precious metals. On MCX, gold futures were flat at ₹50,942 per 10 gram while silver was steady at ₹61,307 per kg. In global markets, gold slipped 0.2% to $1,850.40 per ounce, as the US dollar rebounded slightly after a slide in the previous session. A stronger dollar makes bullion more expensive for overseas buyers, thus weighing on demand of the precious metal. Among other precious metals, spot silver dipped 0.3% to $21.71 per ounce, and platinum eased 1.3% to $946.00, while palladium edged up 0.1% to $1,994.50.
The losses in gold was capped by easing US bond yields. Bullion, seen as a safe store of value during times of economic crises, tends to become less attractive to investors when U.S. interest rates are raised because it yields nothing.
“European Central Bank President Christine Lagarde said the ECB will likely raise interest rates at its July meeting. The FOMC minutes of the May meeting will be released later today and the Fed Chairman's speech is also due this week. We expect both precious metals to remain volatile in today’s session," said Rahul Kalantri, VP Commodities, Mehta Equities.
“Gold has support at $1834-1822, while resistance at $1862-1874. Silver has support at $21.48-21.20, while resistance is at $22.10-22.38. In rupee terms, gold has support at ₹50,740–50,510, while resistance is at Rs51,140–51,350. Silver has support at ₹60,910-60,650, while resistance is at ₹61,680–62,110," he added.
The recent price drop in gold has attracted inflows into gold-backed exchange traded funds. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.44% to 1,068.07 tonnes on Monday from 1,063.43 tonnes on Friday.
“Comex gold trades near near $1850/oz building on the gains noted last week. ETF inflows also show pick up in investor interest. However, weighing on price is increasing emphasis on monetary tightening to control inflation by Fed and other central banks. Gold has recovered sharply from recent lows indicating improved sentiment after recent sell-off however any sharp rise may be challenged by tightening expectations," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
(With Agency Inputs)