Gold prices dropped 1 percent on Monday in the international markets with its safe-haven appeal dimmed by an improvement in risk sentiment after Swiss lender UBS agreed to buy rival Credit Suisse in a rescue effort to contain a banking crisis and stabilise global financial markets.
Spot gold was down 1 percent at $1,969.14 per ounce, as of 0105 GMT, retreating from its highest level since April 2022 hit earlier in the session. US gold futures rose 0.2 percent to $1,977.60.
At 9.56am, gold was down 0.02 percent on the Multi Commodity Exchange (MCX) at Rs 59,372 for 10 grams, while silver shed 0.19 percent to Rs 68,372 a kilogram.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One
Bullion this week gained nearly 4 percent given the rising uncertainty in the global markets due to the banking crisis. For the third week in a row, gold has increased in price as demand for safe-haven assets surged due to the US banking crisis.
Prices continued to head higher as the appeal of non-yielding gold increased because of predictions of less aggressive Federal Reserve rate increases following the failure of two significant US regional banks.
Gold bullion prices in euros also rose to levels not seen since records were set last year, while gold prices in pounds reached a new high. The CPI, on the other hand, had a 6% increase in February, which was the smallest increase from the previous year since September 2021.
We expect gold to trade higher towards Rs 60150 levels, a break of which could prompt the price to move higher to Rs 60790 levels.
Deveya Gaglani, Research Analyst - Commodities, Axis Securities
Gold prices hit a 52-week high last week on the backdrop of a bank crisis in the US and Europe which triggered safe-haven buying against economic uncertainty. MCX Gold prices touched the Rs 59400 level, its highest-ever level in MCX. Correction in the dollar index from the level of $105.3 to $103.8 and low bond yields supported Gold prices.
Investors are awaiting the Fed meeting which is due this week to take cues regarding monetary tightening this week. In Comex, immediate resistance is placed around the $1990 level and support around the $1940 level.
NS Ramaswamy, Head of Commodities, Ventura Securities
COMEX gold is trading almost on flat note after robust rally in previous week on news that Swiss lender UBS sealed a deal to buy peer Credit Suisse in a rescue effort to contain a banking crisis and stabilize global financial markets. Market participants are awaiting for outcome of major central bank's decision. COMEX gold has support near $1,968 and resistance at $1,982.
(With agency inputs)
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