Gold futures on MCX were trading down 0.04 per cent or Rs 23 at Rs 51,583 per 10 grams. Silver futures were trading lower by 0.07 per cent or Rs 50 at Rs 66,783 per kg.
Data on Friday showed US unemployment hitting a two-year low, strong enough that investors bet it would strengthen the Federal Reserve’s resolve to tackle inflation by lifting rates sharply.
Pritam Patnaik, Head – Commodities, Axis Securities said, “The Fed is expected to hike interest rates in its next three meetings, in an aggressive stance to reign in the inflationary trend, the pressure will be on gold prices.”
“With the peace talks yielding no concrete results and with the pressure tactics applied by Russia on its gas users, the diplomatic isolation and probability of a peaceful resolution look slim. This will help to keep the interest in gold alive,” he added.
The prices of yellow metal may remain rangebound for the day on geopolitical risk and China Covid-19 worries, said market experts.
Physical gold demand in India improved last week as domestic prices dropped ahead of a festival over the weekend, while purchases in top consumer China were limited by Covid-19 lockdowns.
In the spot market, the highest purity gold was sold at Rs 51,638 per 10 grams while silver was priced at Rs 66,889 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have dropped about Rs 1,250 per 10 grams in the last three weeks, whereas Silver has dropped more than Rs 2,900 per kg during the period under review.
“Gold prices are in profit booking zone due to stronger dollar and a growing possibility of de-escalation after Russia promised to scale down military operations around Kyiv,” said Ravi Singh, Vice President and Head of Research, ShareIndia.
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,905 and resistance at $1,940 per ounce. MCX Gold June support lies at Rs 51,200 and resistance at Rs 51,900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was little changed at $1,922.43 per ounce by 0202 GMT. US Gold futures were up 0.2 per cent at $1,927.50.
Spot silver edged 0.1 per cent higher to $24.63 per ounce, platinum was down 0.1 per cent at $984.67 and palladium rose 2.2 per cent to $2,326.18.