Gold declines Rs 338/10 gm, silver crashes Rs 973/kg

Gold declines Rs 338/10 gm, silver crashes Rs 973/kg
Gold, Silver Rates Today News Updates:

Prices of gold and silver in the key spot markets of the country opened sharply lower on Friday, May 6, 2022.The opening price for 999 purity gold was Rs 51,449 per 10 grams, down Rs 338 from Thursday’s closing price of Rs 51,787, while that of 999 purity silver was Rs 62,358 per kg, down Rs 973 from Rs 63,331, the data available on India Bullion and Jewellers Associations (IBJA) website showed.

On the Multi commodity exchange of india (MCX), the gold contract for June delivery was trading at Rs 51,239.00 per 10 grams, up Rs 340.00 (0.67 per cent) at 3:18 pm while the silver contract for July delivery was at Rs 62,618.00, up Rs 282.00 (0.45 per cent).

In the global market, gold prices were on track for a third straight weekly decline on Friday as investors fretted over the prospects of aggressive rate hikes from the US central bank, though slight pullback in dollar helped the precious metal to over the prospects of aggressive rate hikes from the US central bank, though slight pullback in dollar helped the precious metal to tick higher on the day, news agency Reuters reported.

Spot gold rose 0.2 per cent to $1,881.17 per ounce by 917 GMT, but was down 0.8 per cent for the week. US gold futures were up 0.4 per cent to $1,883.30, the report said. Speaking on the movement in gold market, Tapan Patel, Senior Analyst – commodities at HDFC securities said,“Gold prices recovered from early lows following weakness in dollar index and sharp rise in euro.

Earlier, gold prices capped upside with rally in US bond yields as 10 year treasury yield rose above 3 per cent. We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1,860 and resistance at $1,890 per ounce. MCX Gold June support lies at Rs 50,800 and resistance at Rs 51,500 per 10 gram.

Firmer dollar, treasury yields weigh on gold Investors await US jobs data

The dollar was headed for a fifth winning weaks versus major peers as benchmark U.S.Treasury yields resumed climb having hit their highest since November 2018 in the previous session.

Gold prices edged lower on Friday, on track for a third straight weekly loss as the U.S. dollar and Treasury yields rallied on a hawkish U.S. Federal Reserve stance, with investors awaiting U.S. jobs data due later in the day.Spot gold fell 0.1% to $1,875.66 per ounce, as of 0307 GMT, while U.S. gold futures were steady at$1,875.40.

Bullion has declined about 1% so far this week.The dollar was headed for a fifth winning weaks versus major peers as benchmark U.S. Treasury yields resumed climb having hit their highest since November 2018 in the previous session.

Investors now eye the U.S. Labor Department's non-farm payrolls data for April at 1230 GMT to assess its impact on monetary policy."I would not be surprised to see another above-consensus wage print, and this may not be good for bullion as the market would read those tea leaves as a sign of improving the odds for a 75 bp point hike at the July FOMC mee

The Fed on Wednesday raised its benchmark rate by half a percentage point, the most in 22 years.The Bank of England also raised interest rates on Thursday to their highest since 2009, hiking by quarter of a percentage point to 1%.

Gold, which offers no yield of its own, tends to fall out of favour among investors when interest rates rise.

Among equities,Asian shares tumbled as investors expressed concerns that rising interest rates could hurt global economic growth. With the market back into selling everything mode, it seems like "don't fight the Fed is back in play," Innes said.

In other metals, spot silver slipped 0.5% to $22.38 per ounce and was on track for a third consecutive weekly decline.Platinum slid 2.7% to $953.90 and palladium fell 0.6% to $2,174.95.

Edited by : R. Reena