Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Gold Prices Today: Yellow metal to remain under pressure amid impending Fed's interest rate hike

Gold and silver are trading very near to its crucial support level gold at $1800 and silver at $23, sustain below this will put gold and silver in bearish zone and would see some more pressure, said Rahul Kalantri, VP Commodities at Mehta Equities.

April 28, 2022 / 09:56 AM IST
Representative Image

Representative Image


Gold prices weakened on April 28 in the international markets towards a two-month trough hit in the previous session, as the US dollar steadied near five-year highs, hurting demand for greenback-priced bullion. Spot gold was down 0.1 percent at $1,885.20 per ounce. US gold futures were also down 0.1 percent at $1,886.40.

At 9.47 am, gold contracts were down 0.5 percent at Rs 50,944 for 10 grams on the Multi-Commodity Exchange (MCX) while silver fell 1.04 percent to Rs 64,006 a kilogram.

Gold and silver prices extended losses as the US dollar index surged on the expectation of an aggressive monetary policy tightening by the US Fed in the upcoming meeting. Investors are expecting an interest rate hike by 50 bps fuelling the dollar index, which is trading at the higher levels of 2017, putting pressure on precious metals. In Comex, gold prices have breached the support of $1,900 while silver is trading below $23.50, indicating higher selling momentum, technically. On MCX, gold has support at Rs 51,000 and below this it may test Rs 50,700 levels. Selling pressure in silver is likely to intensify below Rs 64,500 levels, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

Track Live Gold Prices Here

Trading Strategy

Close

Rahul Kalantri, VP Commodities, Mehta Equities

Gold hit a two-month trough on Wednesday as the dollar rallied on expectations of aggressive monetary policy tightening by the US Federal Reserve. Gold and silver plunged after strong gains in the dollar index and US bond yields. The dollar index hit fresh two year highs - 103 level. The Euro zone is badly hit by a skyrocketing jump in energy costs as Russia halted gas supplies to Poland under the Yamal contract on Wednesday.

Gold and silver are trading very near to its crucial support level gold at $1800 and silver at $23, sustain below this will put gold and silver in bearish zone and would see some more pressure. Gold has support at $1,872-1,860, while resistance is at $1,900-1,912. Silver has support at $23.00-22.78, while resistance is at $23.62-23.80. In rupee terms gold has support at Rs 50,880–50,720, while resistance is at Rs 51,380–51,550. Silver has support at Rs 63,940-63,415, while resistance is at Rs 65,120–65,610.

Ravi Singh-Vice President and Head of Research-ShareIndia

As per the WGC report, global demand for gold surged 34 percent YoY in the first quarter to the highest in over three years, driven by investors worried about Russia's invasion of Ukraine and rising inflation. Gold ETFs had their strongest quarterly inflows since Q3 2020, fuelled by safe-haven demand. However, the rising yields in US dollar and treasury bonds is limiting the gains. Gold may witness some recovery in prices this week.

Buy zone near Rs 51,100 for target of Rs 51,500

Sell zone below Rs 51,000 for target of Rs 50,800

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver plunged again on Wednesday amid strong gains in the dollar index. Both the precious metals settled on a weaker note in the international markets. Gold June futures contract settled at $1,888.70 per troy ounce with a loss of 0.81 percent and silver May futures contract settled at $23.46 per troy ounce with a loss of 0.34 percent. Both precious metals also settled on a weaker note in the domestic markets.

Demand concerns from China also restricted gains of precious metals. We expect precious metals to remain volatile in today’s session. Gold has support at $1,878-1,862 per troy ounce and resistance at $1,900-1,910 per troy ounce while silver has support at $23.20-23.00 per troy ounce and resistance at $23.70-23.88 per troy ounce.

At MCX, gold has support at Rs 51,050-50,900 and resistance at Rs 51,400-51,550 while silver has support at Rs 64,330-64,000 and resistance at Rs 65,000-65,220. Gold and silver are at make or break levels of Rs 51,050 and Rs 64,000 respectively. We suggest closely watching the levels while taking fresh positions in both the precious metals.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Sandip Das
first published: Apr 28, 2022 09:56 am
Sections
ISO 27001 - BSI Assurance Mark