Gold prices in India fell by half a per cent on Thursday, reflecting global trends, with the yellow metal hitting a near two-month low. On the Multi Commodity Exchange, gold June futures fell by 0.6 per cent, or Rs 318, to Rs 50,881 per 10 grams, as against the previous closing price of Rs 51,199. Silver July futures fell by 1.4 per cent, or Rs 910, to Rs 64,380 per kg. Globally, prices of the yellow metal weakened towards a two-month trough hit in the previous session as the US dollar neared a five-year high, according to Reuters, hurting demand for greenback-priced bullion. Spot gold was down 0.1% at $1,885.20 an ounce. US gold futures also settled down 0.1% at $1,886.40.
These days gold and silver are falling heavily due to the strength of the dollar. Price action has been significant in recent times. A series of declines means gold has given up all gains seen courtesy of the Russian invasion of Ukraine. The US will release Q1 GDP and weekly jobless claims in the second session. Silver has seen a sharp sell-off in the precious metal market, so we do not rule out a rebound, however, the undertone is bearish so we recommend selling on every bounce. MCX Gold June futures could be weak. 50,900 per 10 grams.
Gold prices traded weak on Thursday with COMEX spot, gold was trading close to $ 1881 an ounce in morning trade. MCX Gold June contract opened near Rs. 51040 per 10 grams following weak global cues. Gold prices fell below the $1890 support level after the dollar hit pre-pandemic levels since March 2020 levels. Traders and investors are considering a major rate hike at the next US FOMC meeting. High inflation, geopolitical risks and large-scale COVID testing in China may limit some of the downside in gold. We expect gold prices to decline for the day, with COMEX spot gold support at $1870 and resistance at $1,900 per ounce. MCX Gold June support is at Rs. 50800 and resistance at Rs. 51300 per 10 grams.
Gold slipped to a more than two-month trough as the dollar reversed on hopes of an aggressive monetary policy tightening by the US Federal Reserve. The dollar index rose to its highest level since January 2017, touching nearly 103, driven by expectations that the US central bank will be bullish compared to peers and concerns over slowing growth in China and Europe. from the safe-haven will flow. Market participants have given rate relaxation by more than 50 bps this year to pacify inflationary expectations. A cautious approach is advised ahead of the crucial Fed policy statement scheduled next week; In which the comments of the Fed governor, inflation and growth forecasts will be very important to watch. Market participants will be tracking important US GDP figures today; A better-than-expected report may put further pressure on gold and silver prices. Broader trend on COMEX could be in the range of $1855-1905 and on the domestic front, the price could be in the range of Rs 50,500-51,300.