Gold prices slip to one-month lows following decline in global markets

(Representational image) Gold prices slip to one-month lows following decline in global markets

Photo : PTI

Gold and silver prices fell sharply on Monday after US Federal Reserve signalled more rate hikes to rein in a four-decade high inflation in the world’s largest economy.

Gold futures on MCX slipped by 0.5% to one-month low of Rs 50,970 per 10 gram and Silver futures slipped to Rs 54,063 per kg. The fall on Monday comes after a Rs 500 decline in gold as local markets sank in sync with global markets.

Retail gold prices for consumers differ from city to city based on international and a host of local factors. The price of 24-carat 10-gm gold in New Delhi on Monday slipped to Rs 51,600, down by Rs 160 from previous close. Gold prices have declined almost by Rs 710 from Rs 52,310 on August 20 to 51,600 on August 29.

The yellow metal was also weak in international markets, with spot gold declining 0.3% to $1,732.17 per per ounce and dollar index rising to a two-decade high of 109.29. Strong dollar makes gold more expensive for those dealing in other currencies. Spot silver prices declined 1% to $18.69 per ounce while platinum shed 1% to trade at $855.27.

Geojit expects a weak bias to continue during the day if the immediate resistance of $1772 remains caps the upside in gold. A major upside turn around point is placed at $1800, it added.

For silver, the brokerage said that intraday bias most likely to be negative. A direct dip below $18.50 would extend the liquidation pressure. Break above $21 would negate the view.

Global stocks were roiled and emerging market currencies were rattled on Monday morning after US Federal Reserve Chairman Jerome Powell on Friday warned of more rate hikes, delivering a keynote address at Jackson Hole Symposium, a conference of global economists and central bankers. Key US indices such as Dow Jone and Nasdaq over 3% in response to Powell’s warning.

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