Yellow metal drops sharply; silver nears Rs 61,000
Gold prices dropped on Friday, thanks to the firm US dollar and higher treasury yields, which weighed on the demand for the safe-haven metal. The yellow metal is headed for the biggest weekly drop since May.
Gold futures on MCX were trading lower, easing about
0.10 per cent or Rs 52 to Rs 50,934 per 10 grams. Meanwhile, silver futures dropped close to 0.21 per cent or Rs 128 at Rs 61,399 per kg.
The dollar steadied near the previous session's two-
decade high, making greenback-priced bullion less attractive for buyers holding other currencies. Bullion is often seen as an inflation hedge, but the opportunity cost of holding it is higher when the Fed raises short-term interest rates, as gold yields no interest.
In the spot market, the highest purity gold was sold at Rs 50,614 per 10 grams while silver was priced at Rs 60,550 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have remained below the Rs 51,000 mark for the past three sessions, whereas Silver dropped about Rs 1,500 in the last two weeks.
Trading Strategy
"We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,820 and resistance at
$1,870 per ounce. MCX Gold August futures support lies at Rs 50,600 and resistance at Rs 51,300 per 10 grams," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold dropped 0.7 per cent to $1,844.25 per ounce. US gold futures dipped 0.2 per cent to $1,846.90. Gold prices have fallen about 1.5 per cent in what has been a volatile week.
Spot silver fell 0.6 per cent to $21.79 per ounce, platinum dipped 0.5 per cent to $945.50, while palladium rose 0.8 per cent to $1,893.87. All were headed for weekly declines.
Gold, silver prices jump in early trade; yellow metal trading at Rs 51,870
Silver also witnessed a rise in the prices.1 kg of silver is trading at Rs 61,150, after a jump of Rs 1,150.
Gold prices in India jumped on Friday in early morning trade and witnessed a rise of Rs 430. Ten gram of 24-carat gold is trading at Rs 51,870, whereas, 10 gram of 22-carat gold is trading at Rs 47,550, after a jump of Rs 400.
Silver also witnessed a rise in the prices. One kilogramme of silver is trading at Rs 61,150, after a jump of Rs 1,150.
The price of 10 gram 24-carat gold in Delhi, Kolkata, and Bangalore is Rs 51,900. Meanwhile, the price of 10 gram of 22-carat gold in Delhi, Kolkata, and Bangalore is Rs 47,580. In Chennai, 10 gram of 24-carat and 22-carat gold is trading at Rs 51,980 and Rs 47,650 respectively.
On the other hand, silver is trading at Rs 61,150 per kg in in Delhi, Mumbai, and Kolkata.
Spot gold dropped 0.7% to $1,844.25 per ounce by 0238 GMT. Spot silver fell 0.6% to $21.79 per ounce. All were headed for weekly declines.
World stocks headed for their worst week since a market meltdown in the beginning of the pandemic in March 2020, as investors feared sharp rate hikes tipping economies into recession. [MKTS/GLOB]
The U.S. Federal Reserve announced its biggest interest rate hike since 1994 this week, as it scrambles to rein in soaring inflation. Rising rates in the United States increase the opportunity cost of holding non-yielding gold.
Edited by : R. Reena
