A day after touching an all-time high level, the gold and silver prices in the early trade on Friday jumped further in both global and domestic markets. The rise was recorded on account of the weak US dollar and the ongoing bank crisis in the US. However, on the MCX, the gold prices at 1:41 pm recorded a 0.24 per cent fall to Rs 61,345 per 10 grams in the future trading for the June 2023 contracts.
On the MCX at 1:42 pm, silver was also marginally down by 0.15 per cent to Rs 77,923 per kg in the futures trade for the July 2023 contracts.
Rahul Kalantri, vice-president (commodities) of Mehta Equities, during the early trade said, “Gold prices were flat while silver prices surged on Thursday, with both precious metals set for their biggest weekly gain in nearly two months on hopes of a pause in the US central bank’s interest rate hike cycle and receding banking woes that is expected to bolster the appeal of the safe-haven metal.”
He added that precious metals largely ignored the 25 bps rate hike by the ECB amid indications that the central bank is looking to pause its tightening cycle.
“We expect gold and silver to remain highly volatile in today’s session. Gold has support at $2034-1922 while resistance is at $2055-2068. Silver has support at $25.74-25.55, while resistance is at $26.20-26.35. In INR terms gold has support at Rs 61,180-60,820, while resistance is at Rs 61,770, 61,950. Silver has support at Rs 76,550-76,020, while resistance is at Rs 77,850–78,350,” Kalantri said.
Meanwhile, India’s gold demand during January-March quarter declined by 17 per cent to 112.5 tonnes, as record high gold rates and high price volatility affected consumption, according to the World Gold Council (WGC).
Overall gold demand during the corresponding quarter in 2022, was at 135.5 tonnes, WGC’s Gold Demand Trends Q1 2023 stated.
“India’s gold demand in Q1 2023 fell 17 per cent year-on-year to 112.5 tonnes following record high and volatile gold prices. This impacted sentiment and gold jewellery demand dropped to 78 tonnes from 94.2 tonnes in Q1 2022 with little support from the investment side.
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