Yellow metal heads for monthly losses despite gains

Yellow metal heads for monthly losses despite gains

NEW DELHI: Gold prices rose on Friday as economic data from the US increased the appeal of the yellow metal. However, gains were capped by a firm dollar.

The American economy unexpectedly shrank in the first quarter of 2022, data from the Bureau of Economic Analysis showed Thursday. Meanwhile, US dollar traded at two-decade highs.

Despite today's gains, safe-haven bullion was headed to log its biggest monthly drop since September amid bets on aggressive interest rate hikes by the Federal Reserve.

yellow-metal-heads-for-monthly-losses-despite-gains

Gold futures on MCX advanced 0.51 per cent or Rs 260 to Rs 51,522 per 10 grams. However, silver futures were trading up by 0.33 per cent or Rs 260 at Rs 64,790 per kg.

Higher short-term US interest rates and bond yields increase the opportunity cost of holding zero-yield bullion. A stronger dollar makes greenback-priced gold less aracve for other currency holders.

Rahul Kalantri, VP Commodies, Mehta Equies said: Gold and silver bulls were trying to stop the recent price fall that pushed prices to nine-week lows. A strong US dollar and rising bond yields have been hammering the metals.

"The Euro currency fell to a five-year low against the US dollar as soaring energy prices crimp the Eurozone economy. The US dollar index is solidly up again today and hit another two-year high," he added.

In the spot market, the highest purity gold was sold at Rs 51,526 per 10 grams while silver was priced at Rs 64,266 per kg on Thursday, according to the Indian Bullion and Jewellers Associaon.

The spot prices of gold have dropped about Rs 2,100 per 10 grams in the last nine trading sessions, whereas Silver has tumbled about Rs 5,850 per kg in the same period under review.

Gold prices are in correcon mode as the US dollar index surged on the expectaon of an aggressive monetary policy ghtening by the US Fed in the upcoming meeng, said Ravi Singh, Vice President and Head of Research, ShareIndia

"The outcome of the meeng may decide the next trigger for gold prices. Gold has immediate support near Rs 50,800 levels," he added.

Trading strategy

"We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1890 and resistance at $1910 per ounce. MCX Gold June support lies at Rs. 51200 and resistance at Rs. 51900 per 10 gram," said Tapan Patel, Senior Analyst (Commodies), HDFC Securies.

Global markets

Spot gold was up 0.3 per cent at $1,899.00 per ounce, as of 0247 GMT, but had lost about 2 per cent so far this month. US gold futures were up 0.6 per cent at $1,902.10.

Spot silver gained 0.1 per cent to $23.16 per ounce, planum dipped 0.5 per cent to $915.19, and palladium rose 0.5 per cent to $2,243.74. All were set for monthly falls.

10 gm of Gold selling at Rs 52,960, silver trading at Rs 64,000 a kg

The price of gold vary for different regions based on certain parameters such as the excise duty, making charges and the state taxes

The price of 10 grams of 24 carat gold on Saturday went up by Rs 590 to Rs 52,960, while the price of 1 kg of silver rose by Rs 200 with the metal selling at Rs 64,000 per kg.

The price of 10 grams of 22 carat gold on Saturday surged by Rs 550, and the precious metal is selling at Rs 48,550.

The price of 10 grams of 24 carat gold in Delhi and Mumbai is at par with the price of 10 grams of 24 carat gold in Bangalore, Hyderabad and Kolkata, with the precious metal trading at Rs 52,960 in these regions.

The price of 10 grams of 22 carat gold in Delhi and Mumbai is at par with the price of 10 grams of 22 carat gold in Bangalore, Hyderabad amd Kolkata with the metal selling at Rs 48,550 in these regions.

However, the price of 10 grams of 24 carat gold in Chennai is Rs 53,420, and 10 grams of 22 carat gold in the state is selling at Rs 48,970.

The price of 1 kg of Silver in Delhi, Mumbai and Kolkata is being sold at Rs 64,000 for the day, while in regions such as Chennai, Banglore and Hyderabad, the metal is trading at Rs 69,200 for the day.

The price of gold vary for different regions based on certain parameters such as the excise duty, making charges and the state taxes

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