Gold prices on Friday in the international markets were held near a three-month low as the strongest dollar in two decades continued to sap demand for greenback-priced bullion, setting up what could be the metal's fourth consecutive weekly fall. Spot gold was down 0.1% at $1,820.54 per ounce, as of 0054 GMT, having dropped to its lowest since February 7 earlier in the session. US gold futures fell 0.2% to $1,821.20.
At 9:28 am, gold contracts were down 0.11 percent at Rs 50,117 for 10 gram on the Multi-Commodity Exchange (MCX), while silver added 0.13 percent at Rs 58,830 a kilogram.
Fear of rapid rate hikes drove selling pressure in precious metals in the previous trading session, as US inflation figures remained above 40-year high. Yesterday, the US dollar, which normally swings against gold prices, gained 0.90 percent. Due to demand concerns, selling pressure on crude oil and industrial metals has drawn investors to the US dollar index. Technically, gold prices are likely to continue lower in today's session, and any price climb into resistance levels could be a selling opportunity. Gold faces resistance at Rs 50700 and support at Rs 50000, with a drop to Rs 49500 levels possible. Silver has Rs 58000 as support and Rs 60500 as resistance, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions, Axis Securities
Gold prices yesterday slid close to $48 from their highs of $1858 to $ 1810, then finically settling around $1821-22. This can be directly attributed to the dollar index hitting its 20-year high of 104.95 yesterday. Gold is clearly losing its safe-haven store value to a surging USD. Ideally, a recessionary economic trend, ratcheting up of the geopolitical situation in the Russian - Ukrainian war, with Russia warning of more destructive measures for aspirant NATO members, Finland and Sweden, and a softer bond markets, should have greatly helped gold bulls' cause, but the exact reverse has taken place. This could be because the flash correction in the global equity markets has drained liquidity, leading to selling orders across all asset classes. Additionally, the risk premium is fairly entrenched with the USD, putting further pressure on gold prices. We are in for another volatile session, with a negative bias.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded steady on Friday with spot gold prices at COMEX were trading near $1824 per ounce taking breather from previous fall. The yellow metal witnessed sharp decline as investors weighed on record inflation assuming aggressive rste hike from FED in coming months. The dollar index hovered near 104.72 while US 10-year bond yields rose by more than 2% lowering demand for gold.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1800 and resistance at $1840 per ounce. MCX Gold June support lies at Rs 49800 per 10 gram and resistance at Rs 50600 per 10 gram.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices were badly hammered after the dollar index hit fresh 20-year high. Both the precious metals settled on a weaker note in the international markets. Gold prices slipped below the crucial support level of $1830 per troy ounce and silver also breaches $21 per troy ounce levels on a daily closing basis. Gold and silver are trading at make or break levels and if the dollar index continues to rise with current pace it could push precious metals lower in the coming sessions.
Gold has support at $1814-1800 per troy ounce and resistance at $1838-1850 per troy ounce while silver has support at $20.50-20.20 per troy ounce and resistance at $21.00-21.30 per troy ounce. At MCX, gold has support at Rs 50000-49770 and resistance at Rs 50380-50550 while silver has support at Rs 58300-57500 and resistance at Rs 59220-60000. We suggest that traders should stay away from the markets while long-term investors can start buying by the SIP mode.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.