Domestic gold prices slipped on Wednesday, September 28, even as the dollar climbed to multi-year peaks as risks from looming rate hikes by US Federal Reserve persisted. Meanwhile, the rupee depreciated to an unprecedented 81.90 against the US dollar.
On MCX, yellow metal prices were down nearly 0.2 percent, touching the intraday low of Rs 49,242 after gaining the peak at around 10 am on Wednesday. Meanwhile, silver metal prices were nearly 1 percent down at intraday low of Rs 54,800.
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, suggested buying December gold futures contract on the dips around Rs 49,300 with a stop loss of Rs 49,080 for the target of Rs 49,700. He also expected the dollar index and the US 10-year bond yields to show further strength in the upcoming sessions.
Meanwhile, spot gold was down 0.3 percent at $1,624.12 per ounce, as in the initial trade, edging closer to a 2-1/2-year trough of $1,620.20 touched earlier this week. At the time of writing this report, the spot gold prices touched $1,624.35.
Gold and silver prices slid amid Indian equity benchmarks BSE Sensex and NSE Nifty50 extending losses to the sixth trading day in a row with the dollar index surging to new highs. As of 11:05 am (IST), the US Dollar Index Futures was trading at 114.565, gaining as much as 0.45 percent from the last close.
Meanwhile, with a 25 percent drop between June to September, brent crude is set for its biggest quarterly drop in nearly two years. The last time brent crude fell over 25 percent in a single quarter was during the January-March period of 2020, during which prices collapsed 65 percent. Brent crude prices have now fallen below the $85 mark on Wednesday amidst fears of recession and a stronger US dollar.
(With inputs from agencies)
First Published: Sept 28, 2022 11:18 AM IST
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