Gold slips Rs 112/10 gm, silver declines Rs 1,006/kg

The opening price for 999 purity gold was Rs 51,205 per 10 grams, down Rs 112 from Monday’s closing price of Rs 51,317, while that of 999 purity silver was Rs 61,200 per kg, down Rs 1,006 from Rs 62,206, the data available on India Bullion and Jewellers Association’s (IBJA) website showed.

On the Multi Commodity Exchange of India (MCX), the gold contract for June delivery was trading at Rs 51,042.00 per 10 grams, up Rs 135.00 (0.27 per cent) at 1:09 pm while the silver contract for July delivery was at Rs 61,570.00, up Rs 267.00 (0.44 per cent).

In the global market, gold prices traded in a tight range on Tuesday, as the US dollar recouped some of its overnight losses, making greenback-priced bullion more expensive for overseas buyers, news agency Reuters reported.

Spot gold was flat at $1,854.59 per ounce, as of 0557 GMT, after rising to its highest since May 9 of $1,865.29 on Monday. US gold futures gained 0.3 per cent to $1,8538.10, the report said.

ShareIndia Securities in a report said, “The weak sentiments of equity market has driven investors to much safer assets. Also, dollar has witnessed selling from two-decade highs and rising concerns over US economic growth have increased the gold demand. However, Fed’s aggressive rate hikes and fiscal tightening measures will still offer major resistance to gold. The cut in the five-year loan prime rate by the People’s Bank of China has supported the prices of industrial metals and crude oil, which has also boosted the prices of the precious metals last week.”

The brokerage gave a “Buy” rating on gold above Rs 51,000 for the target of Rs 51,300 and a “Sell” below Rs 50,700 for the target of Rs 50,500.

Gold, Silver Rates Monday: Gold prices opened higher in the key spot markets of the country while silver slipped on Monday, May 23, 2022.

The opening price for 999 purity gold was Rs 51,248 per 10 grams, up Rs 221 from Friday’s closing price of Rs 51,027, while that of 999 purity silver was Rs 61,759 per kg, down Rs 245 from Rs 62,004, the data available on India Bullion and Jewellers Association’s (IBJA) website showed.

On the Multi Commodity Exchange of India (MCX), the gold contract for June delivery was trading at Rs 50,918.00 per 10 grams, up Rs 89.00 (0.18 per cent) at 12:36 pm while the silver contract for July delivery was at Rs 61,803.00, up Rs 396.00 (0.64 per cent).

In the international market, gold prices climbed on Monday to their highest in more than a week, helped by a weaker dollar, although higher US Treasury yields capped gains in greenback-priced bullion, news agency Reuters reported.

Spot gold rose 0.5 per cent to $1,854.57 per ounce by 0532 GMT. Prices hit their highest since May 12 at $1,855.91 earlier in the session. US gold futures gained 0.6% to $1,853.50, the report said.

Commenting on the gold market, Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart said, “Due to continued selling pressure in the global stock markets, investors have turned towards the precious metals. Gold and silver have registered an increase after a month of continuous decline. The dollar has retreated from two-decade highs and rising concerns over US economic growth have turned investors to safe-haven assets. However, the US Federal Reserve’s aggressive rate hikes and balance sheet cuts will still be major resistance to gold’s bullishness. The cut in the five-year LPR by the People’s Bank of China has supported the prices of industrial metals and crude oil, which has also boosted the prices of the precious metals last week. In MCX, a pullback move can be seen so buying can be initiated at lower levels where gold has resistance at Rs 51,100 and support at Rs 50,500. Silver has resistance at Rs 62,300 and support at Rs 60,500.”