NEW DELHI: Gold prices dropped marginally on Wednesday amid mixed cues. While lower US Treasury yields supported the bullion, the buoyancy in the dollar dented its appeal.
The US Federal Reserve promised further rapid interest-rate hikes to bring down high inflation on Tuesday but pushed back against growing fears among investors and economists that sharply higher borrowing costs will trigger a steep downturn.
Gold futures on
dropped marginally, down 0.10 per cent or Rs 51 at Rs 50,771 per 10 grams. Silver futures traded lower, down by 0.45 per cent or Rs 272 at Rs 59,921 per kg.
Gold prices internationally remained under pressure as a rising US dollar capped any chances of an upside, despite softening of treasury yields, said Patnaik, Head – Commodities, Axis Securities. All ears will be on the Fed chair’s statement tonight.
“The market will look for confirmation of the aggressive maneuvers proposed by Fed members to reign in inflation. If reconfirmed, gold prices could slide further,” he added.
In the spot market, the highest purity gold was sold at Rs 51,029 per 10 grams while silver was priced at Rs 60,518 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have remained flat in the last one to two weeks, whereas silver has eased mildly in the last one week, the data suggests.
Trading Strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold August support lies at Rs 50,500 and resistance at Rs 51,000 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Securities.
Global markets
Spot gold was up 0.1 per cent at $1,821.57 per ounce. US gold futures firmed 0.1 per cent at $1,823.10.
Spot silver was flat at $20.84 per ounce, while platinum rose 0.5 per cent to $914.64 and palladium gained 2 per cent to $1,910.43.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
