Gold and silver prices have slipped on Wednesday amidst a strong dollar and ahead of US Federal Reserve's May 2022 policy. The yellow metal dipped despite the equities market witnessing a steep selloff globally amidst Covid lockdown pressure, geopolitical tension, and inflationary pressures. This bullion should have been the safe haven in the current scenario, however, investors today carried profit booking.

At MCX, currently, gold futures maturing June 03, is trading at Rs51,468 down by Rs116 or 0.22%. The commodity is trading between the day's high and low of Rs51,401 and Rs51,566 respectively.

Meanwhile, at the exchange, silver futures maturing May 05, are performing at Rs64,834 down by Rs134 or 0.21%. Silver futures are trading between an intraday high and low of Rs64,724 and Rs65,054 respectively.

Gold price is unchanged across Indian jewelers. 10 gram of gold in 24 carat is priced at Rs52,860 today same as the previous day, while 10 gram in the 22 carat is available at Rs48,450.

On the other hand, as per Good Returns data, in India, 1 kg of silver is priced at Rs65,000 down by Rs450 from the previous day's Rs65,450. The 10 gram and 100-gram silver is sold at Rs650 and Rs6,500 respectively.

On Tuesday, MCX gold prices gained 0.34% on the back of a sharp decline in the US 10-year bond yields and on risk aversion in US markets.

ICICI Securities, Research Analysts Raj Deepak Singh, Saif Mukadam, and Thirushankar C R in their commodity report on the previous day's performance said, "Moreover, growing worries over rising inflation and unsatisfactory CB consumer confidence data from the US boosted the demand for the precious metal."

However, ICICI Securities analysts believe that a firm dollar will put a lid on further gains of bullions.

The trio added, "US dollar hit a two-year high as concerns about expectations that the US Fed will aggressively raise interest rate in upcoming policy meeting, capping further gains in bullion prices."

On Wednesday's trading outlook, ICICI Securities analysts said, "MCX gold prices are likely to trade with a negative bias for the day due to a firm dollar index. It is facing resistance at 50 day moving average, which comes to around Rs51,770."

"As long as it is trading below this level, it is likely to correct towards Rs51,200 levels. Silver prices are expected to take cues from gold prices and may move towards Rs64,200," the analysts further added.

Meanwhile, IIFL Securities in its technical outlook on gold said, "Gold prices recouped from 55-day EMA. The expectations of further correctional rise are on card with the validation of same average line. However, medium term sentiments turned negative as MACD index generated crossover sell signal. Intraday support lies at 51200/50900, resistance at 51800/52100."

For silver, IIFL Securities added, ": Initial bias shifted sideways down as the MACD index generated a crossover sell signal. The MACD histogram is printing in negative territory. Rise close to 55-period EMA on hourly chart will attract fresh selling. Intraday support lies at 64400/63800 resistance at 65400/65900."