Gold prices in India struggled to a month low amid global weakness in the precious metal. Gold was up on MCX futures prices 50,369 per 10 grams while silver contract rose 0.2% 55,834 per kg. According to analysts at Kotak Securities, gold rates have also weakened in the recent past as selling in commodities intensified on demand concerns and a strengthening US dollar.
in global markets, gold prices The dollar was steady at $1,711.36 an ounce, supported by a slight decline in the US dollar, though the greenback remained higher. A stronger dollar makes greenback-priced bullion less expensive for buyers holding other currencies. Traders will focus on Thursday’s meeting of the European Central Bank, where policymakers are expected to raise interest rates by 50 basis points.
However, a rise in the benchmark US 10-year Treasury yield put pressure on gold. Sleep Viewed as an inflation hedge, high interest rates and bond yields increase the opportunity cost of holding bullion, which yields no interest.
According to analysts, it is clear from the outflow of ETFs that weak investor interest also puts pressure on gold.
“The US dollar fell over the past few sessions amid debate about the pace of the Fed’s rate hike, but remains backed by safe havens amid global growth concerns and hopes that the Fed may lead other central banks in monetary tightening. ETF outflow also shows lack of investor interest despite lower prices. Gold has halted at $1,700 an ounce level after a sharp sell-off in the past few days. However, sustained growth is still difficult as against the US dollar. The outlook is still firm,” said Ravindra Rao, VP- Head Commodity Research, Kotak Securities.
Among other precious metals, spot silver rose 0.3% to $18.79 an ounce.
Market players will also keep an eye on the virus situation in China, which has seen a fresh jump in cases. Kotak Securities said in a note that they are concerned that if China continues with its zero tolerance policy and uses sanctions to limit the spread of the virus, it will affect economic activity and overall demand for commodities, including gold. Can do.
Gold, Silver Technical Outlook
“Recovery uptick in gold is only expected to continue trading above $1760. Otherwise, weak bias to continue the day,” said domestic brokerage Geojit. As long as silver price stays below $20.50 bearish outlook to continue countering. The upside turnaround point is placed at $22.50,” the brokerage said.
(with agency input)
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