A decline in the US bond yield capped losses, although a stronger dollar and concerns over further rate hikes by the Federal Reserve limited gains.
Gold futures on
were trading down sharply by 0.88% or Rs 463 to Rs 52,122 for 10 grams. However, silver futures plunged 1.91% or 1,132 rupees to 58,144 rupees per kg.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities said the rebound in the US dollar, continued ETF outflows and concerns about consumer demand in India and China were weighing on the yellow metal.
“The US dollar index rebounded on buying and safe haven positioning ahead of the FOMC minutes,” he added. “Gold has rallied strongly in recent days, but appears to be losing momentum and we could see a correction if the Fed maintains a hawkish stance.”
Gold is very sensitive to rising US interest rates, as these increase the opportunity cost of holding non-performing bullion. A weaker greenback makes dollar-denominated gold cheaper for other currencies.
In the spot market, the highest purity gold was sold at Rs 52,461 for 10 grams while silver was priced at Rs 58,352 per kg on Thursday, according to the Indian Bullion and Jewelers Association.
Spot gold prices jumped by around 2,000 rupees per 10 grams over the past three weeks, while silver gained 3,350 rupees per kg over the same period under review.
Gold prices fell due to a stronger dollar, ICICIDirect said. “Concerns over further rate hikes by the US Federal Reserve to calm inflation have weighed on demand for precious metals.”
Global Markets
Spot gold was up 0.1% at $1,781.40 an ounce, at 0241 GMT. US gold futures fell 0.1% to $1,796.70.
Spot silver slid 0.3% to $20.20 an ounce, platinum fell 0.1% to $932.01 and palladium rose 0.1% to 2,148.76 $.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
A decline in the US bond yield capped losses, although a stronger dollar and concerns over further rate hikes by the Federal Reserve limited gains.
Gold futures on
were trading down sharply by 0.88% or Rs 463 to Rs 52,122 for 10 grams. However, silver futures plunged 1.91% or 1,132 rupees to 58,144 rupees per kg.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities said the rebound in the US dollar, continued ETF outflows and concerns about consumer demand in India and China were weighing on the yellow metal.
“The US dollar index rebounded on buying and safe haven positioning ahead of the FOMC minutes,” he added. “Gold has rallied strongly in recent days, but appears to be losing momentum and we could see a correction if the Fed maintains a hawkish stance.”
Gold is very sensitive to rising US interest rates, as these increase the opportunity cost of holding non-performing bullion. A weaker greenback makes dollar-denominated gold cheaper for other currencies.
In the spot market, the highest purity gold was sold at Rs 52,461 for 10 grams while silver was priced at Rs 58,352 per kg on Thursday, according to the Indian Bullion and Jewelers Association.
Spot gold prices jumped by around 2,000 rupees per 10 grams over the past three weeks, while silver gained 3,350 rupees per kg over the same period under review.
Gold prices fell due to a stronger dollar, ICICIDirect said. “Concerns over further rate hikes by the US Federal Reserve to calm inflation have weighed on demand for precious metals.”
Global Markets
Spot gold was up 0.1% at $1,781.40 an ounce, at 0241 GMT. US gold futures fell 0.1% to $1,796.70.
Spot silver slid 0.3% to $20.20 an ounce, platinum fell 0.1% to $932.01 and palladium rose 0.1% to 2,148.76 $.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)