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Gold Prices Today: Yellow metal to remain under pressure, support lies around Rs 52,000

"We expect gold to hold Rs 51,850 levels and silver could hold Rs 65,800 levels on a closing basis in today's session. Weakness in rupee could support prices in the domestic markets," said Manoj Kumar Jain of Prithvi Finmart Commodity Research.

April 25, 2022 / 09:47 AM IST
Representative image

Representative image

Gold prices edged lower on April 25 in the international markets near their lowest level in two weeks touched in the previous session as an elevated US dollar continued to pressure demand for greenback-priced bullion.

At 9.38 am, on the Multi-Commodity Exchange (MCX), gold contracts were down 0.36 percent, trading at Rs 52,073 for 10 grams, while silver fell 1.15 percent to Rs 65,780 a kilogram.

Gold and silver prices remained under pressure from the aggressive US Fed. The dollar, which usually moves inverse to gold prices, hit more than two-year high and closed above the 101 mark on Friday while US 10-year treasury yield near at 3-year high. All Fed members are pushing a half percent rate hike in the upcoming policy meeting, though the rate hike in the last meeting was a quarter-point. Today's trend in precious metals may remain range-bound to the downside. Gold has support at Rs 52000 and resistance at Rs 52700. Silver has support at Rs 66000 and resistance at Rs 67500, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades about 0.5 percent lower near $1,925/oz weighed down by firmness in US dollar amid Fed’s hawkish stance and some profit taking by ETF investors. However, supporting prices are concerns about the health of the Chinese economy, increasing Russia-Ukraine tensions and inflation concerns. Gold has corrected after failing to sustain near $2,000/oz level and may remain pressurised unless we see some stability across commodities.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold fell on Friday and was set for its biggest weekly decline since mid-March as signs of faster policy tightening by the Federal Reserve lifted Treasury yields and the dollar. Speaking at an IMF meeting, Powell said that “Inflation is much higher now and our policy rate is still more accommodative than it was then so it is appropriate, in my view, to be moving a little bit more quickly.” After his comments the dollar index crossed two year highs and 10-year bond yields are also trading at three year highs. The dollar index crossed 101 marks and pushed precious metals lower.

However, higher global inflation prospects and slower economic growth outlook due to the Russia-Ukraine crisis and higher inflation is supporting precious metals at lower levels.

We expect some more weakness in bullion price in today’s session. Gold has support at $1,917-1,905, while resistance at $1,940-1,948. Silver has support at $23.80-23.62, while resistance is at $24.34-24.55. In rupee terms gold has support at Rs 51,920–51,770, while resistance is at Rs 52,420–52,550. Silver has support at Rs 66,050- 65,710 while resistance is at Rs 66,890–67,270.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices settled on a weaker note in the international markets. Gold June futures contract settled at $1,932.50 per troy ounce, down by 0.81 percent and silver May futures contract settled at $24.19 per troy ounce, down by 1.75 percent. Domestic markets also settled on a weaker note. We expect gold and silver to remain volatile this week. Gold has support at $1,922-1,908, while resistance is at $1,945-1,958 per troy ounce. Silver has support at $24.00-23.70, while resistance is at $24.55-24.80 per troy ounce.

At MCX, gold has support at Rs 52,080-51,850 and resistance at Rs 52,480-52,660 while silver has support at Rs 66,220-65,800 and resistance at Rs 66,900-67,330. We expect gold to hold Rs 51,850 levels and silver could hold Rs 65,800 levels on a closing basis in today's session. Weakness in rupee could support prices in the domestic markets.

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.​



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Sandip Das
first published: Apr 25, 2022 09:47 am
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