13 Apr , 2022 By : Kanchan Joshi
Gold and silver prices were steady today after a strong jump in the previous session. On MCX, gold futures dipped slightly to Rs52,843 per 10 gram while silver was flat at Rs68,817 per kg. In the previous session, gold had jumped 1.3% while silver 2.2%, tracking a jump in international prices. In rupee terms, gold has support at Rs52,620–52,380, while resistance is at Rs53,120–53,330, according to Rahul Kalantri, VP Commodities, Mehta Equities. Silver has support at Rs68,350- 67,980 while resistance is at Rs69,100–69,440, he added.
In global markets gold today was up 0.2% at $1,970.55, after a strong jump in the previous session. Among other precious metals, spot silver was flat at $25.36 per ounce, platinum was up 0.3% to $968.17 and palladium rose 1.1% at $2,350.68.
Among other commodities, oil prices were back above $100 a barrel after Russian President Vladimir Putin vowed to continue the war in Ukraine and China partially eased Covid curbs.
Asian equities were mostly higher today despite US inflation data, released on Tuesday, coming in at 8.5%, the highest in four decades. But the reading was was better-than-expected at the core level, which excludes volatile food and energy prices.
Treasuries slipped while the dollar index was steady. While gold is considered an inflation hedge, rising prices can lead central banks to hike interest rates, pushing up bond yields and increasing the opportunity cost of holding zero-yield bullion.
“Gold rallied for a fifth straight day on Tuesday as Treasury yields sank following core U.S. inflation data largely met expectations, reducing the likelihood of long-term aggressive policy tightening by the Federal Reserve. Despite the hotter-than-expected inflation numbers in March, some economists believe that the first month of spring will mark the peak in price pressures," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“We expect gold and silver keep their positive momentum but ahead for long weekend holiday may show less liquidity. Gold has support at $1948-1930, while resistance at $1982-2000. Silver has support at $25.10- 24.82, while resistance is at $25.84-26.05."
Meanwhile, latest data show holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.2% to 1,093.10 tonnes on Tuesday.
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