Gold Prices Today: Strong US dollar, stable global markets to retain pressure on yellow metals

Gold Prices Today: Strong US dollar, stable global markets to retain pressure on yellow metals

Gold rallied sharply in last few days which fizzled out near $2000/oz level and we are now seeing some correction which may extend further amid persistent strength in US dollar and stability in equities, said Ravindra Rao of Kotak Securities.





April 20, 2022 / 10:06 AM IST





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Gold prices eased on Wednesday in the international markets following a sharp drop in the previous session, as elevated US Treasury yields continued to pull investors away from zero-yield bullion.

At 9.42am, on the Multi-Commodity Exchange (MCX), gold contracts were down 0.69 percent, trading at Rs 52,383 for 10 grams, while silver fell 0.82 percent to Rs 68,203 a kilogram.

The strong US dollar index, which is trading at two-year highs, has kept precious metals under pressure, making gold and silver prices more expensive for holders of other currencies. The yield on US Treasury bonds increased to 2.9 percent, lowering demand for precious metals.

Brent crude oil prices tumbled more than 5 percent yesterday as the IMF lowered its global growth prediction from 3.8 percent to 3.6 percent, putting pressure on precious metals prices along with crude oil. The IMF's greater inflation prediction, on the other hand, would keep gold and silver