The dollar index held close to a two-decade high of 109.29 touched last month, making the bullion expensive for those holding other currencies.
Gold futures on
were trading lower as they dropped 0.52 per cent or Rs 266 to Rs 50,972 per 10 grams. However, silver futures tanked 1.31 per cent or Rs 733 to Rs 55,037 per kg.
Central banks around the world risk losing public trust and must now act forcefully to combat inflation, even if that drags their economies into a recession, European Central Bank board member Isabel Schnabel said, according to a Reuters report.
Pritam Patnaik, Head – Commodities, Axis Securities said with the hopes of any policy easing being completely swept off the table by the Fed chair, gold prices have been subjected to some severe thrashing.
“Powell maintained that the Fed will continue with its tightening policy until the inflation is brought down substantially from a four-decade high. The Fed chief also said that the September rate hike decision will be data-dependent,” he added.
Gold premiums in top consumer China jumped last week to their highest since October as a fall in global prices encouraged purchases, while demand cooled in India as buyers waited for a bigger price drop.
In the spot market, the highest purity gold was sold at Rs 51,668 per 10 grams while silver was priced at Rs 55,607 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have tanked Rs 800 per 10 grams since August 12, whereas Silver has plunged Rs 2,750 per kg in the same period under review.
“We expect gold and silver prices to remain volatile to negative in today’s session. Gold has support at $1,726-1,712, while resistance is at $1,748-1,755. Silver has support at $18.10-17.88, while resistance is at $18.42-18.61,” said Rahul Kalantri, VP Commodities, Mehta Equities.
In rupee terms, gold has support at Rs 50,950–50,740, while resistance is at Rs 51,520–51,680. Silver has support at Rs 54,050-53,540, while resistance is at Rs 54,880–55,340, he added.
Spot gold fell 0.3 per cent to $1,732.17 per ounce after falling 1.2 per cent on Friday. US gold futures were down 0.3 per cent at $1,745.3.
Spot silver fell 1 per cent to $18.69 per ounce, platinum slipped 1 per cent to $855.27 and palladium was flat at $2,110.19
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