Gold Prices Today: Hawkish Fed, strong US yields to keep pressure on yellow metal, support around Rs 50,900

Gold Prices Today: Hawkish Fed, strong US yields to keep pressure on yellow metal, support around Rs 50,900

Tapan Patel, Senior Analyst (Commodities), HDFC Securities, expects gold prices to trade sideways





May 09, 2022 / 09:51 AM IST





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Gold dropped on Monday in the international markets as an elevated dollar pressured demand for greenback-priced bullion, with rising US Treasury yields further weighing on prices. Spot gold was down 0.4% at $1,874.89 per ounce, by 02:52 GMT, while US gold futures also slipped 0.4% to $1,874.80.

At 9:37 AM, gold contracts were marginally down 0.03 percent at Rs 51,328 for 10 grams on the Multi-Commodity Exchange (MCX), while silver shed 0.14 percent at Rs 62,460 a kilogram.

Precious metals prices remained under pressure due to the hawkish outlook of the US Fed over upcoming policy. However, today's session may be important for precious metals prices as Russia threatens to announce war on its Victory Day against NATO countries that support Ukraine. After Fed's rate hike, we have seen a recovery in gold prices. The equity market may jitter over Russia's victory day and ramp up safe haven appeal. Gold has support at Rs 50800 and resistance at Rs 51500 and above this level prices may move towards Rs 52000. Silver has support at Rs