Gold rate today: Yellow metal tumbles to Rs 51,300 per 10 gram; silver below Rs 68,000

NEW DELHI: Gold prices in India bucked the global trends and dropped on Tuesday as the yellow metal lost its sheen to riskier assets. Firm US dollar and climbing bond yields also dented the sentiments.

Gold futures on MCX were trading down 0.53 per cent or Rs 271 at Rs 51,300 per 10 grams. Silver futures were trading lower by 0.43 per cent or Rs 394 at Rs 67,811 per kg.

Patnaik, Head – Commodities, Axis Securities said that a combination of face to face peace engagement between Russia and Ukraine, a strong dollar index and higher bond yields have led to the correction in gold prices.

“Negotiators from the warring nations of Russia and Ukraine meet this week in Turkey to work out a cease-fire and possibly a conflict resolution. While the latter looks improbable in the short term, eking out a cease-fire will be a best-case scenario for now,” he added.

China’s net gold imports through Hong Kong fell 13.7 per cent in February to their lowest level in nearly a year, official data showed, as Lunar New Year holidays and high prices dented demand.

Higher bullion prices led some people to sell old jewellery in India last week amid dim physical gold demand, while a resurgence in COVID-19 cases in China hit purchases of the metal in the country.

In the spot market, the highest purity gold was sold at Rs 51,691 per 10 grams while silver was priced at Rs 67,592 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have tumbled more than 1,904 per 10 grams in the last three weeks, whereas silver has dropped about Rs 3,000 per kg during the period under review.

Gold is showing profit booking on account of gains in the US bond yield and strength in the dollar, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“However, gains in energy prices and the downbeat US pending home sales, durable goods and core durable goods orders data released last week supported precious metals. Gold prices may show some more correction this week,” he added.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,915 and resistance at $1,940 per ounce. MCX Gold April support lies at Rs 51,200 and resistance at Rs 51,900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold was flat at $1,925.86 per ounce, as of 0218 GMT. US gold futures were down 0.7 per cent at $1,926.

Spot silver was up 0.4 per cent at $24.94 per ounce and platinum edged higher 0.3 per cent to $986.61, while palladium rose 0.8 per cent to $2,250.97.