Gold rate today: Yellow metal slips below Rs 52,000; silver holds Rs 68,500

NEW DELHI: Gold prices dropped on Monday as hopes of peace talks between Russia and Ukraine strengthened, denting the demand for the safe-haven asset.

A strong rally in the US dollar also weighed on the sentiments. The dollar index hit a more than one-week high, making gold more expensive for other currency holders.

Gold futures on MCX were trading down 0.24 per cent or Rs 126 at Rs 51,750 per 10 grams. Silver futures were trading lower by 0.44 per cent or Rs 304 at Rs 68,532 per kg.

Gold as a safe haven is attractive due to soaring inflation and uncertainty in the Russian-Ukraine war, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“As long as the two factors continue to dominate market sentiment, a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips,” he added.

China’s financial hub of Shanghai launched a planned two-stage lockdown of the city of 26 million people on Monday to contain surging local COVID-19 cases.

High 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 51,892 per 10 grams while silver was priced at Rs 68,691 per kg on Friday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have jumped about Rs 650 per 10 grams in the last one week, whereas silver has surged more than Rs 1,000 per kg during the period under review.

Patnaik, Head – Commodities, Axis Securities said that gold wil play the wait and watch game before it takes a directional trend, ensuring volatility in the counter.

The investor sentiments remain split, with the hedge fund managers having reduced their long bets, while the holding in long term investor driven Gold ETF continues to rise, he added. “It is advisable to wait for a clear trend prior to creating an aggressive position.”

Trading strategy
Singh from ShareIndia suggested buying gold near Rs 52,000 for the target of Rs 52,300, whereas traders can sell the bullion below Rs 51,600, for the target of Rs 51,400.

Global markets
Spot gold fell 0.5 per cent to $1,947.90 per ounce, as of 0151 GMT. US gold futures were down 0.2 per cent at $1,949.70.

Spot silver fell 1.2 per cent to $25.21 per ounce and platinum shed 0.8 per cent to $993.59, while palladium added 1.3 per cent to $2,366.12.