21 Mar , 2022 By : Kanchan Joshi
Gold rates dipped today with futures on MCX slipping to ?51,442 per 10 gram. However, silver futures edged 0.25% higher to ?68049 per kg. Gold rates have been very volatile in India since jumping to ?55,600 earlier this month. In international markets, gold rates were steady today as investors eyed developments in the Russia-Ukraine conflict. Spot gold was flat at $1,921.80 per ounce, hovering near a two-week low it hit last week.
“Gold and silver plunged last week after the U.S. Federal Reserve raised key interest rates by 25 basis points and also gave signal for 6 more rate hikes in the upcoming policy meetings. The U.S. Federal Reserve Chairman also showed concerns about higher inflation and lower economic growth due to ongoing Russia-Ukraine war. Coronavirus cases in most of the countries are rising again. Looking to the geo-political tensions, rising coronavirus cases, tightening monetary policies by global central banks and rising global inflation could continue to keep precious metals volatile," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“Gold has support at $1912-1900, while resistance at $1940-1952. Silver has support at $24.80-24.55, while resistance is at $25.62-25.90. In rupee terms gold has support at ?51,210–51,000, while resistance is at ?51,720–52,000. Silver has support at ?67,400- 66,950 while resistance is at ?68,480–68,950," he added.
The Fed last week also raised its benchmark overnight interest rate by a quarter of a percentage point and forecast an aggressive plan to push borrowing costs to restrictive levels next year. Two of Fed's most hawkish policymakers said on Friday that the central bank needs to take more aggressive steps to combat inflation. Higher interest rates tend to raise the opportunity cost of holding non-interest paying gold.
“Comex gold trades marginally lower near $1927/oz after last week’s sharp losses. Gold is range bound as support from Russia-Ukraine tensions and retreat in US bond yields is countered by stable equities and Fed’s monetary tightening expectations. Gold hash corrected sharply from recent highs but has managed to hold above $1900/oz level. Gold may trade choppy amid mixed factors but geopolitical issues may keep prices supported," said Ravindra Rao, Head Commodity Research at Kotak Securities.
Meanwhile, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 1,082.44 tonnes on Friday — a high since March 2021.
Among other precious metals, spot silver was up 0.2% to $25.00 per ounce, platinum rose 0.7% to $1,029.21.
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