Tracking higher global rates in the precious metals, gold and silver prices rose in the Indian markets today. Gold futures up 0.32% on MCX 51,000 per 10 grams while silver jumped 0.33% 61,609 per kg. In global markets, gold edged higher to $1,850 on a fall in the US dollar, though higher US Treasury yields limited gains. A weaker dollar makes bullion more attractive to foreign buyers. The dollar index has pulled back recently as investors bet that an easing of lockdowns in China could aid global growth.
Among other precious metal prices, spot silver rose 0.4% to $21.84 an ounce, while platinum rose 0.3% to $958.
Bullion, seen as a safe store of value in times of economic crisis, becomes less attractive to investors when US interest rates are raised because it does not offer any interest.
The recent fall in gold prices prompted an influx in gold-backed exchange-traded funds, or ETFs. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.69% to 1,063.43 tonnes on Friday from 1,056.18 tonnes on Thursday.
Gold can touch the level of $ 1850 to $ 1855 and silver can touch the level of $ 22.20 to $ 22.50. On MCX we are giving buying advice in gold from 50,200 50,300 levels with a stop loss of 49,940 levels to target 50,800 level,” said Anuj Gupta, Vice President – Research at IIFL Securities.
after killing Gold is struggling amid a firming $55,500 in March and a firming US bond yield.
In a recent note on its quarterly outlook for gold, Kotak Securities said: “Gold started off well in the year 2022, but now the momentum seems to be waning. This is likely to be a bitterly sweet year for gold due to mixed factors and volatility is here to stay. On the positive side, geopolitical tensions have added a new uncertainty to the global economic outlook and further aggravated the inflationary situation leading to increased demand to stay invested in the metal. ETF inflows show renewed investor interest, although buying has been very sensitive.”
“Overall, we expect gold to remain volatile and trade in a broad range, although buying on dips may be an ideal strategy. With equity markets declining in momentum, gold may benefit from increased demand as an alternative asset. We are currently seeing an exodus from both equities and commodities on the prospect of higher borrowing costs, although there is room for improvement in equities even after the rally over the past few years. The outlook for the US dollar remains strong, although even a minor correction could be enough to support gold and other commodities. Gold may trade in the range of $1700-2010/oz. MCX Gold may trade in the range of 47000-55000/10 grams and buy at lower levels. (with agency input)