iStockNEW DELHI: Gold prices continued to remain under pressure and dipped further on Wednesday as the US dollar continued to trade at two-decade highs.
The dollar resumed climbing after Federal Reserve officials reiterated the US central bank's resolution to maintain an aggressive policy stance to tackle soaring inflation.
Gold futures on MCX were trading down by 0.20 per cent or Rs 98 at Rs 49,221 per 10 grams. Silver futures were trading sharply lower by 0.77 per cent or Rs 429 at Rs 54,950 per kg.
goldpricewiget
The Fed will hike its key interest rate to a much higher peak than predicted two weeks ago and the risks are skewed towards an even higher terminal rate, according to economists polled by Reuters.
Gold is seen as a hedge against inflation and economic uncertainties, but rate hikes have dented the non-yielding bullion's appeal and pushed the dollar to multi-year highs.
Pritam Patnaik, Head - Commodities, Axis Securities expects the gold markets to remain under pressure for the short to medium term. "The central bankers stand united in their battle against inflation and are ready to do whatever is needed to ensure the same, which clearly indicates higher rates," he added.
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.
In the spot market, the highest purity gold was sold at Rs 49,529 per 10 grams while silver was priced at Rs 55,391 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have plunged almost Rs 1,150 per 10 grams in the last two weeks, whereas silver has plunged about 1,900 per kg in almost the same period under review.
Ravi Singh, Vice President and Head of Research, ShareIndia said that trend in gold is expected to remain bearish to sideways, till some major trigger pushes the prices higher.
"Stronger dollar and treasury yields are continuously putting pressure on gold prices. Higher inflation and fear of possible US recession has induced an indecisiveness in gold trend," he added to avoid long positions on the bullion at this point.
Global markets
Spot gold was down 0.3 per cent at $1,624.81 per ounce, as of 0132 GMT. US gold futures dipped 0.2 per cent to $1,632.4.
Spot silver fell 0.9 per cent to $18.26 per ounce, platinum was down 0.5 per cent at $844.21 and palladium shed 1.4 per cent to $2,058.44.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The dollar resumed climbing after Federal Reserve officials reiterated the US central bank's resolution to maintain an aggressive policy stance to tackle soaring inflation.
Gold futures on MCX were trading down by 0.20 per cent or Rs 98 at Rs 49,221 per 10 grams. Silver futures were trading sharply lower by 0.77 per cent or Rs 429 at Rs 54,950 per kg.
goldpricewiget
The Fed will hike its key interest rate to a much higher peak than predicted two weeks ago and the risks are skewed towards an even higher terminal rate, according to economists polled by Reuters.
Gold is seen as a hedge against inflation and economic uncertainties, but rate hikes have dented the non-yielding bullion's appeal and pushed the dollar to multi-year highs.
Pritam Patnaik, Head - Commodities, Axis Securities expects the gold markets to remain under pressure for the short to medium term. "The central bankers stand united in their battle against inflation and are ready to do whatever is needed to ensure the same, which clearly indicates higher rates," he added.
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.
In the spot market, the highest purity gold was sold at Rs 49,529 per 10 grams while silver was priced at Rs 55,391 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have plunged almost Rs 1,150 per 10 grams in the last two weeks, whereas silver has plunged about 1,900 per kg in almost the same period under review.
Ravi Singh, Vice President and Head of Research, ShareIndia said that trend in gold is expected to remain bearish to sideways, till some major trigger pushes the prices higher.
"Stronger dollar and treasury yields are continuously putting pressure on gold prices. Higher inflation and fear of possible US recession has induced an indecisiveness in gold trend," he added to avoid long positions on the bullion at this point.
Global markets
Spot gold was down 0.3 per cent at $1,624.81 per ounce, as of 0132 GMT. US gold futures dipped 0.2 per cent to $1,632.4.
Spot silver fell 0.9 per cent to $18.26 per ounce, platinum was down 0.5 per cent at $844.21 and palladium shed 1.4 per cent to $2,058.44.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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