Wednesday, June 29, 2022
Home > Commodity > Gold rate today: Yellow metal trades lower; silver holds Rs 66,500 level

Gold rate today: Yellow metal trades lower; silver holds Rs 66,500 level

NEW DELHI: Gold prices dropped during early trade on Friday as a stronger US dollar dimmed down the demand for safe-haven metal. A stronger US dollar makes gold less attractive for other currency holders.

However, gold is being supported by the Ukraine uncertainty, rapid inflation, and the still persistent COVID-19 pandemic.

Gold futures on MCX eased down 0.22 per cent or Rs 112 to Rs 51,785 per 10 grams. Silver futures were trading lower by 0.20 per cent or Rs 132 at Rs 66,633 per kg.

Gold prices are expected to outperform even after the current war tension settles thanks to the after-effects of war such as higher commodities prices and inflation, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“The world would see some sort of recession zone where gold would be the preferred asset above all,” he added.

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 51,790 per 10 grams while silver was priced at Rs 66,019 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have remained flat in the last 10 trading sessions, whereas silver has declined Rs 2,700 in the same time period.

Pritam Patnaik Head – Commodities, Axis Securities said gold investors are having to deal with news flows and developments that is making a directional call on gold difficult.

“While persistent inflation and worsening situation in Ukraine is accentuating the safe-haven demand in gold, Federal Reserve’s monetary policy, which includes a series of rate hikes and tapering of their balance sheet, creates a bearish sentiment in gold,” he added.

Trading strategy
Singh from ShareIndia has advised to buy gold above Rs 52,000 for the target of Rs 52,400, whereas traders can short the yellow metal below Rs 51,700 for the target of 51,500.

Global markets

Spot gold was subdued at $1,929.48 per ounce by 0318 GMT. US gold futures were down 0.3 per cent at $1,931.90.

Spot silver edged 0.1 per cent lower to $24.54 per ounce. Platinum was down 0.2 per cent at $960.57 and palladium rose 1.4 per cent to $2,264.22. Both metals were set for a fifth-consecutive weekly loss.

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