NEW DELHI: Gold prices eased down on Wednesday as the dollar held ground at its highest in more than two years and pressured demand for greenback-priced bullion. The dollar held steady after climbing to its highest since March 2020 on Tuesday as concerns about slowing growth in China and expectations the Federal Reserve will aggressively hike rates boosted demand for the greenback.
Gold futures on MCX dropped 0.13 per cent or Rs 69 down at Rs 51,515 per 10 grams. Silver futures shed 0.19 per cent or Rs 93 to trade at Rs 64,875 per kg.
Rahul Kalantri, VP Commodities, Mehta Equities said that gold and silver gained in the early trading session on Tuesday but lost its early morning gain after better than expected US durable goods orders and core durable goods orders data. “After good US data, the dollar index extended its gain and put more pressure on bullion.”
In the spot market, highest purity gold was sold at Rs 51,993 per 10 grams while silver was priced at Rs 65,597 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold has dropped below Rs 52,000 per 10 grams for the first time in more than two weeks, whereas silver has remained below Rs 66,000 mark for more than a month now.
The war crisis and global inflation are already getting worse day by day, the concern mounting due to rising Covid cases in China is taking on the nerves of gold traders, said Ravi Singh, Vice President and Head of Research, ShareIndia.
“However, the rising yields in U.S. debt instruments such as bonds and Treasuries, is limiting the losses in gold and silver,” he added.
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Trading strategy
Gold has support at $1,888-1,876, while resistance at $1,914-1,928. Silver has support at $23.31-23.07, while resistance is at $23.88-24.10, said Kalantri from Mehta Equities.
“In rupee terms, gold has support at Rs 51,220–50,960, while resistance is at Rs 51,820–52,050. Silver has support at Rs 64,620- 64,365 while resistance is at Rs 65,650–66,050,” he added.
Global markets
Spot gold was down 0.1 per cent at $1,903.16 per ounce, as of 0037 GMT. U.S. gold futures were up 0.1 per cent at $1,905.80.
Spot silver gained 0.3 per cent to $23.56 per ounce, platinum rose 0.2 per cent to $922.89, and palladium firmed 0.1 per cent to $2,188.44.