Gold rate today: Yellow metal slips below Rs 51,500; silver too loses sheen

NEW DELHI: Gold prices traded steady, with a negative bias on Tuesday, following strength in the US dollar on rising prospects of fresh sanctions on Russia and rate hike possibilities.

However, strong US data and aggressive Fed stance has capped upside. The 10-year US Treasury yields have eased marginally. Gains on Wall Street also dimmed bullion’s appeal.

Gold futures on MCX were trading down 0.07 per cent, or Rs 35, at Rs 51,498 per 10 gram. Silver futures were trading lower by 0.14 per cent, or Rs 94, at Rs 66,201 per kg.

Gold prices may see profit booking ahead of de-escalation of tensions between Russia and Ukraine. The rising yields and stronger dollar is denting the bullions appeal, said Ravi Singh, Vice President and Head of Research, ShareIndia.

Physical gold demand in India improved last week as domestic prices dropped ahead of a festival over the weekend, while purchases in top consumer China were limited by Covid-19 lockdowns.

In the spot market, highest purity gold was sold at Rs 51,485 per 10 gram while silver was priced at Rs 66,628 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have cooled down more than Rs 400 per 10 gram in the last one week, whereas silver has dropped about Rs 1,000 per kg during the period under review.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,910 and resistance at $1,940 per ounce. MCX Gold June 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 down 0.2 per cent at $1,929.60 per ounce by 0203 GMT. US gold futures were flat at $1,933.60.

Spot silver edged 0.1 per cent lower to $24.48 per ounce, platinum was little changed at $986.06.