The dollar eased from a two-year high in the previous session, making greenback-priced gold cheaper. Bullion is seen as a safe store of value during economic and political crises.
Gold futures on MCX advanced 0.17 per cent or Rs 88 to Rs 51,550 per 10 grams. Meanwhile, silver futures were trading gains by 0.57 per cent or Rs 369 at Rs 65,485 per kg.
Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver started the week with some heavy selling pressure with gold hitting a nearly four-week low and silver a nine-week low.
“Despite sharp corrections, they will see positive moves in coming days as the marriage season and Akshaya Tritiya fall early next month,” he added.
Although the war between Russia and Ukraine & global inflation continues to worsen, market participants are now more focused on rising yields in US bonds, reducing the lustre of gold and silver.
In the spot market, the highest purity gold was sold at Rs 52,077 per 10 grams while silver was priced at Rs 65,166 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have dropped more than Rs 1,500 per 10 grams in one week, whereas Silver has tumbled about Rs 5,200 per kg in the last six trading days.
Gold prices are witnessing profit booking as investors are taking out funds to pay the margins in the equity market, said Ravi Singh, Vice President and Head of Research, ShareIndia
“Although gold has safe-haven demand stemming from the Ukraine crisis and its potential impact on the global economy, a stronger dollar and a rise in yields are limiting gains,” he added.
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,890 and resistance at $1,915 per ounce. MCX Gold June support lies at Rs 51,100 and resistance at Rs 51,700 per 10 gram, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was up 0.3 per cent at $1,902.46 per ounce, as of 0249 GMT. US gold futures were up 0.34 at $1,902.60.
Spot silver gained 1 per cent to $23.85 per ounce, platinum rose 0.6 per cent to $926.00, and palladium advanced 2.1 per cent to $2,189.18. Palladium prices fell nearly 13 per cent on Monday.