Gold and silver prices dipped in domestic markets today, following some softness in global rates. On MCX, gold futures were down 0.3% to ₹51,619 per 10 gram while silver fell 0.75% to ₹66,899 per kg. Gold prices have fallen sharply from this month’s high of ₹55,600 per 10 gram. In global markets, spot gold was down 0.3% at $1,926.46 per ounce. The metal has gained about 5.6% so far in the quarter, their biggest quarterly gain since September 2020.
Spot silver fell 0.7% to $24.67 per ounce, but was on course for its best quarterly rise since June 2021.
Analysts say that the Ukraine crisis is helping support the precious metal on the downside. Bullion is considered a safe store of value during times of political and financial uncertainty. Traders also were keeping a close tab on the U.S. 2-year/10-year Treasury yield curve, which briefly inverted on Tuesday, as bond investors bet that aggressive tightening by the Federal Reserve to fight soaring inflation.
Gold is also viewed as a hedge against rising inflation. Also, supporting gold, the dollar index slipped to a near one-month low in the previous session, making gold less expensive for other currency holders.
“On Wednesday, gold and silver prices trade on a positive note, on corrective bounces from recent selling pressure that pushed the metals to five-week lows on Tuesday. The dollar index also slipped from their highs and slipped below 98 marks on Wednesday while benchmark 10-year bond yields also cooled-off and slipped below 2.40% after hitting three year highs,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“Gold has support at $1910-1895, while resistance at $1940-1950. Silver has support at $24.35- 24.00, while resistance is at $24.95-25.24. In INR terms gold has support at ₹50,650–50,370, while resistance is at ₹51,240–51,520. Silver has support at ₹66,550- 66,120 while resistance is at ₹67,520–67950.”
Gold Technical Outlook
Technically, says Vidit Garg, director at MyGoldKart, on “intraday charts we saw profit booking around $1,938 levels, ADX reading below 25 are suggesting rangebound movement whereas current divergence in RSI is reflecting that traders are undecided for further movement. On daily charts 9 period EMA & 21 period EMA are showing same value reflecting a big move coming ahead if Gold manages to close above 1945 while supports placed at $1917 and $1908. For the day bears may continue to drive the market as long as its trading below $1945.”
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