Gold Prices Today: Hawkish Fed, strong US yields to keep pressure on yellow metal, support around Rs 50,900

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Gold dropped on Monday in the international markets as an elevated dollar pressured demand for greenback-priced bullion, with rising US Treasury yields further weighing on prices. Spot gold was down 0.4% at $1,874.89 per ounce, by 02:52 GMT, while US gold futures also slipped 0.4% to $1,874.80.

At 9:37 AM, gold contracts were marginally down 0.03 percent at Rs 51,328 for 10 grams on the Multi-Commodity Exchange (MCX), while silver shed 0.14 percent at Rs 62,460 a kilogram.

Precious metals prices remained under pressure due to the hawkish outlook of the US Fed over upcoming policy. However, today's session may be important for precious metals prices as Russia threatens to announce war on its Victory Day against NATO countries that support Ukraine. After Fed's rate hike, we have seen a recovery in gold prices. The equity market may jitter over Russia's victory day and ramp up safe haven appeal. Gold has support at Rs 50800 and resistance at Rs 51500 and above this level prices may move towards Rs 52000. Silver has support at Rs 61800 and resistance at Rs 63500, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded weak on Monday with spot gold prices at COMEX trading near $1876 per ounce in morning trade. Stronger dollar and firm US bond yields continued to weigh on gold prices keeping them in a tight range below $1900 per ounce. The 10-year US Treasury yields were 0.59% up at 3.14% in the morning trade.

We expect gold prices to trade sideways with COMEX Spot gold support at $1860 and resistance at $1890 per ounce. MCX Gold June support lies at Rs 50900 and resistance at Rs 51700 per 10 gram.

Ravi Singh - Vice President and Head of Research - ShareIndia

Most of the central banks are increasing interest rates worldwide. However, gold prices are expected to outperform even after the current war tension settles. Due to the after-effects of war, higher commodities prices and soared inflation, the world would see some sort of recession zone where gold would be the preferred asset above all.

Buy zone near Rs 51200 for target of Rs 51500

Sell zone below Rs 51100 for target of Rs 50800

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Gold and silver showed some upside movement on May 6. On the Multi-Commodity Exchange (MCX), June gold contracts closed up by 0.89% at Rs 51,343 for 10 grams while July contract silver futures closed at Rs 62,548 a kilogram, 0.34% up. As per technical chart, gold and silver prices are trading at oversold zone and any time we can see a huge short covering rally, momentum indicator RSI is also indicating the same on the hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels, and should focus on important technical levels.

June Gold closing price Rs 51343, Support 1 - Rs 51200, Support 2 - Rs 50980, Resistance 1 - Rs 51500, Resistance 2 - Rs 51700.

July Silver closing price Rs 62548, Support 1 - Rs 62200, Support 2 - Rs 61700, Resistance 1 - Rs 62800, Resistance 2 - Rs 63200.

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