Gold rate today: Yellow metal eases marginally; silver slips below Rs 70,000


NEW DELHI: Gold prices eased on Tuesday after touching the key levels of $2,000 per ounce in the previous session. A stronger dollar dented the bullion’s appeal.

Gold climbed to $1,998.10 on Monday, buoyed by safe-haven demand, as the Ukraine crisis dragged on and inflation concerns mounted. However, the metal later gave up most gains as the dollar and US 10-year Treasury yields firmed.

Gold futures on MCX dropped marginally 0.06 per cent, or Rs 34, at Rs 53,238 per 10 gram. Silver futures were also trading lower by 0.16 per cent, or Rs 113, at Rs 69,863 per kg.

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While bullion is considered a safe store of value during times of political and economic crises, as well as a hedge against inflation, a firmer dollar makes greenback-priced gold more expensive for other currency holders.

Rahul Kalantri, VP Commodities, Mehta Equities, said the tension due to the Russia-Ukraine war with inflationary pressures across the board and concerns over the economic slowdown from Covid-led restrictions in China also boost safe-haven demand for gold and silver.

In the spot market, highest purity gold was sold at Rs 53,603 per 10 gram while silver was priced at Rs 70,109 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have surged more than Rs 2,100 per 10 grams in the last two weeks, whereas silver has advanced about Rs 3,500 per kg in the same period of review.

The possibility of an EU embargo on Russian gas and the threat of some curbs on crude in Europe’s next sanctions package bolstered gold and crude oil, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“That’s adding to already elevated raw material prices, fueling demand for gold as a hedge against accelerating inflation,” he added.

Trading strategy
Gold has support at $1962-1950, while resistance at $1998-2010. Silver has support at $25.58- 25.40, while resistance is at $26.05-26.22, said Kalantri from Mehta Equities.

“In rupee terms, gold has support at Rs 52,950–52,780, while resistance is at Rs 53,550–53,680. Silver has support at Rs 69,350- 68,980 while resistance is at Rs 70,370–70,740,” he added.

Global markets
Spot gold was down 0.1 per cent at $1,976.46 per ounce, as of 0229 GMT. US gold futures slipped 0.3 per cent to $1,981.



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