gold price today: Gold rate today: Yellow metal drops marginally; silver below Rs 62,500


NEW DELHI: Gold prices dropped marginally on Monday as a strong dollar dented the demand for the yellow metal. The rise in Treasury yields also hit sentiments.

The dollar firmed to 20-year highs against its rivals, making greenback-priced bullion less attractive for other currency holders, whereas the Indian currency hit a new lifetime low at open.

Gold futures on MCX dropped marginally by 0.10 per cent or Rs 54 to Rs 51294 per 10 grams. Meanwhile, silver futures were trading lower by 0.24 per cent or Rs 148 at Rs 62,400 per kg.

While gold is seen as a safe store of value during times of political and economic crises, it is highly sensitive to rising short-term US interest rates and bond yields, which raise the opportunity cost of holding bullion.

Gold prices traded weak on Monday as the stronger dollar and firm US bond yields continued to weigh on gold, keeping it in a tight range, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

In the spot market, the highest purity gold was sold at Rs 51,692 per 10 grams while silver was priced at Rs 62,530 per kg on Friday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have dropped about Rs 2,000 per 10 grams in less than three weeks, whereas silver has plunged more than Rs 7,500 per kg in the same period under review.

Pritam Patnaik, Head – Commodities, Axis Securities said that in the new week, all eyes will be on the US inflation data and Fed speakers. “While it is largely expected that the inflationary trend could come in inflated, the consensus is building that the inflationary trend has most likely peaked out in the month of May,” he added.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,860 and resistance at $1,890 per ounce. MCX Gold June support lies at Rs 50,900 and resistance at Rs 51,700 per 10 gram,” said Patel from HDFC Securities.

Global markets
Spot gold was down 0.4 per cent at $1,874.89 per ounce, by 0252 GMT, while US gold futures also slipped 0.4 per cent to $1,874.80.

Spot silver slipped 0.5 per cent to $22.23 per ounce, platinum fell 1.6 per cent to $948.00, and palladium dropped 0.4 per cent to $2,038.58. Demand concerns dragged palladium down more than 8 per cent to its lowest level since January.



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