Gold and silver prices declined on Wednesday amid a stronger dollar ahead of the US Federal Reserve’s May 2022 policy. The yellow metal declined despite heavy selling in equity markets amid global COVID lockdown pressure, geopolitical tensions and inflationary pressures. This bullion should have been a safe haven in the current scenario, though investors booked profits today.
Currently on MCX Sleep Trading on Futures maturing on 03rd June 51,468 down 116 or 0.22%. Commodity trading between high and low of the day 51,401 more 51,566 respectively.
Meanwhile, silver futures maturing on May 05 are performing at the exchange 64,834 down 134 or 0.21%. Silver futures are trading between intraday highs and lows 64,724 more 65,054 respectively.
Gold price at Indian Jewelers remains unchanged. The price of 10 grams of gold in 24 carats is 52,860 today is the same as the previous day while available in 22 carats at 10 grams 48,450.
On the other hand, as per the data of Good Returns, the price of 1 kg of silver in India is . is 65,000 down 450 from last day 65,450. Silver is sold at 10 grams and 100 grams 650 more 6,500 respectively.
MCX gold prices on Tuesday edged up 0.34% on a sharp fall in US 10-year bond yields and risk aversion in US markets.
Further, rising concerns over rising inflation and unsatisfactory CB consumer confidence data from the US boosted demand for the precious metal, said ICICI Securities, Research Analysts Raj Deepak Singh, Saif Mukadam and Thirushankar CR in their commodity report on the previous day’s performance. gave. .”
However, analysts at ICICI Securities are of the view that a firmer dollar will put a lid on further gains of bullioners.
“The US dollar rose to a two-year high as there were concerns about expectations that the US Fed will aggressively raise interest rates in the upcoming policy meeting, leading to further gains in bullion prices,” the trio said.
On Wednesday’s trading outlook, analysts at ICICI Securities said, “MCX Gold prices are likely to trade with a negative bias for the day on account of a firmer dollar index. It is facing resistance at 50-day EMA. has been, which almost comes 51,770.”
“As long as it is trading below this level, it is likely to correct 51,200 levels. Silver prices are expected to give signals to gold prices and may move further 64,200,” the analysts continued.
Meanwhile, IIFL Securities in its technical outlook on gold said, “Gold prices have corrected from the 55-day EMA. Expectations of further corrective growth with the validation of the same average line are on the cards. However, in the form of MACD index. Medium term sentiment turned negative. Crossover sell signal. Intraday support is at 51200/50900, resistance at 51800/52100.
For Silver, IIFL Securities said, “: Initial bias shifted to downside as MACD index generated a crossover sell signal. MACD histogram is printing in negative territory. Close to 55-period EMA on hourly chart A move up will attract fresh selling. Intraday support is at 65400/65900, 64400/63800 resistance.”