Gold price in India dipped on Tuesday after touching the highest in more than a month during the previous session. On the Multi-Commodity Exchange, gold future tumbled 0.21 per cent to Rs 53,160 for 10 grams at 1100 hours on April 19. Silver price also dropped on Tuesday. The precious metal slumped 0.22 per cent to Rs 69,825 for a kilogram on Tuesday.
In the global market, the price of yellow metal steadied on April 19, all thanks to lower US Treasury yields. Spot gold was trading at $1,977.61 per ounce,
as of 0013 GMT. US gold futures eased 0.4 per cent to $1,979.30. The Russia-Ukraine crisis and rising inflationary pressures increased safe-haven bids for the precious metals. The bullion rose to nearly key $2,000 per ounce level during the last session. However, a sharp rise in US dollar index and elevated US bond
yields limited further upsides in bullion prices. Moreover, interest rate hikes to cool higher prices also hurt demand for the metals and capped upside.
Gold Price Future Outlook
Commenting on the gold price outlook, Sriram Iyer, senior research analyst at Reliance Securities said, “International gold spot and COMEX futures have started flat this Tuesday morning in Asian trade. Rising dollar and strengthening bond yields will continue to keep upside capped. On the other hand, higher inflation and safe haven trade could cap downside. Today’s range of Spot LBMA gold is $1966.49-$1994.30.”
“Domestic gold futures prices could start flat this Tuesday morning, tracking a subdued start in the overseas markets. Today’s range of MCX June gold is Rs 53,105-53,550,” he added.
“The possibility of a EU embargo on Russian gas and the threat of some curbs on crude in Europe’s next sanctions package bolstered gold and crude oil. That’s adding to already elevated raw material prices, fueling demand for gold as a hedge against accelerating inflation. Buy Zone Near – Rs 53,100 for the target of Rs 53,500. Sell Zone Below – Rs 53,000 for the target of Rs 52,800,” said Ravi Singh, vice president and head of research, ShareIndia.
“MCX gold prices are expected to trade with a positive bias primarily due to ongoing higher inflation. MCX gold prices are trading above the key support level of 50 hourly moving average, which is around Rs 53,050. As long as it sustains above this level, it likely to head further towards Rs 53,650 levels for the day,” said ICICI Direct Research in a note.
Silver Price Outlook
“International silver spot and COMEX futures have started flat to weaker this early Tuesday morning in Asian trade. A strong Dollar will continue to keep upside capped. Today’s range of Spot LBMA silver is $25.542-$26.172. Domestic silver prices could start flat this early Tuesday morning, tracking a subdued start in the overseas markets. Today’s range of MCX May silver is Rs 69,405-70,645,” Iyer added.
Silver prices are expected to take cues from gold prices and may move further towards Rs 70,600 for the day, ICICI Direct Research added.
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