Gold price today 28 April 2022: Gold falls below Rs 51,000, Silver gives up Rs 65,000; can trade sideways down

Gold prices were trading down over half a percent in India on Thursday, reflecting global trends where the yellow metal has teetered near a two-month low. On the Multi Commodity Exchange, gold futures fell 0.6 percent or 318 rupees in June to 50,881 rupees per 10 grams from the previous close of 51,199 rupees. July silver futures fell 1.4 per cent or Rs 910 to Rs 64,380 per kg. Global yellow metal prices weakened towards a two-month low in the previous session as the US dollar stabilized near five-year highs, hurting demand for gold bullion at the greenback price, according to Reuters. Spot gold fell 0.1% to $1,885.20 an ounce. US gold futures were also down 0.1% to $1,886.40.

Jigar Trivedi, Manager – Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers

Gold and silver have fallen sharply these days on a strong dollar. The price movement has been significant over the past few days. A string of declines means gold has given up any gains it made thanks to the Russian invasion of Ukraine. US to release Q1 GDP and weekly jobless claims in the second session. Silver has seen a sharp sell-off in the precious metals market so we don’t deny the possibility of a rebound, but the undertone is bearish so we recommend selling on any bounce. MCX Gold June Futures could weaken to Rs. 50,900 per 10 grams.

Tapan Patel, Senior Analyst – Commodities, HDFC Securities

Gold prices traded weak on COMEX on Thursday Spot gold prices traded near $1881 an ounce in morning trade. MCX Gold June contract opened lower near Rs. 51040 per 10 grams according to weak global evidence. Gold prices fell below the $1890 support levels as the dollar surged to pre-pandemic levels and the highest since March 2020. Traders and investors are anticipating a major rate hike at the next US FOMC meeting. Higher inflation, geopolitical risk and mass COVID testing in China may cap some downside in gold. We expect gold prices to trade sideways to the downside for the day with COMEX spot gold support at $1870 and resistance at $1900 an ounce. MCX Gold June support stands at Rs. 50800 and resistance at Rs. 51300 per 10 grams.

Navneet Damani, Senior Vice President – ​​Commodity & Currency Research, Motilal Oswal Financial Services

Gold slipped to more than two-month lows as the dollar rallied on anticipation of aggressive monetary tightening by the US Federal Reserve. The dollar index surged to its highest level since January 2017, hitting a level of around 103, fueled by expectations that the US Federal Reserve will be more hawkish than its peers and safe-haven flows fueled by concerns over slowing growth in China and Europe were fueled. Market participants are pricing in more than a 50 basis point rate hike this year to calm inflation expectations. A cautious approach is advised ahead of the Fed’s key policy statement scheduled for next week; with comments from the Fed Governor, inflation and growth forecasts being very important. Market participants will be eyeing key US GDP data today; which, if reported better than expected, could put further pressure on gold and silver prices. The broader trend on the COMEX could be in the $1855-$1905 range and on the domestic front, prices could be in the Rs.50,500-51,300 range

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online accepts no responsibility for the advice they give. Please consult your investment adviser before investing.)

Comments are closed.