28 Mar , 2022 By : Kanchan Joshi
Gold and silver were under pressure today in domestic markets, tracking softness in global rates. On MCX, gold futures were down 0.24% to Rs51,750 per 10 gram while silver rates dipped 0.4% to Rs68550 per kg. In global markets, Spot gold fell 0.6% to $1,947.04 an ounce as the U.S. dollar strengthened, sapping demand for the safe-haven asset after a weekly advance.
Gold, in international markets, had climbed 1.9% last week as the war in Ukraine burnished gold’s haven appeal while in India the precious metal had posted about 1% gains. Though gold has come off recent highs, Ukraine war and steady inflows into bullion-backed ETFs have helped cap the downside. Holdings in exchange-traded funds backed by the metal rose for a 10th straight week. Investors are seeking a store of value amid inflationary pressures stoked by soaring commodity prices partly caused by the war and ensuing sanctions.
In India, gold had hit a high of Rs55,600 earlier this month.
Meanwhile, face-to-face talks between Ukrainian and Russian negotiating teams are set to resume this week. Asian equities were lower today as Covid-linked lockdown in Shanghai sapped the mood in Hong Kong and China.
Apart from US jobs reports due this week, traders will be watching the US GDP data, which will be released on Wednesday. Also, key Fed officials are also set to speak this week.
“On Friday, gold and silver showed profit taking at higher levels after record gains in the US bond yield and strength in the dollar. The dollar index also gained for the second straight week due to ongoing Russia-Ukraine war. However, gains in global energy prices and downbeat U.S. pending home sales, durable goods and core durable goods orders data released last week supported precious metals. Higher global energy prices continue to fuel global inflation and derail global economic growth and could support precious metals," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“We expect gold and silver could show some pressure ahead of New round of Russia-Ukraine talks to take place on 29-30 March. Gold has support at $1932-1920, while resistance at $1955-1965. Silver has support at $25.05-24.80, while resistance is at $25.55-25.80. In rupee terms gold has support at Rs51,680–51,480, while resistance is at Rs52,100–52,180. Silver has support at Rs68,240- 67,980 while resistance is at Rs69,280–69,880."
0 Comment