Domestic gold prices extended losses on Tuesday as global benchmarks touched nine-month low, amid strength in greenback overseas.
MCX gold August futures fell 0.2 percent to touch the intraday low of Rs 50,527 per 10 grams as of 11:09 am. Silver followed suit and white metal futures fell 0.8 percent to touch a one week low of Rs 56,470 per kilogram on the last count.
Ravindra Rao, VP-Head Commodity Research at Kotak Securities, said “Gold is a safe haven and global growth worries are high, however, it has failed to benefit due to continuing strength in the US dollar and this may not change ahead of US inflation data later this week. ”
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, expects both precious metals to remain volatile in Tuesday’s session. He suggests selling gold around Rs 50,750 for a target of Rs 50,400 with a stop loss at Rs 50,900.
Global oil benchmarks eased as China issued fresh COVID-19 restrictions and fears of a global economic slowdown weighed on the fuel outlook.
Indian equity indices made a gap down start amid negative cues across other Asian equities. The rupee opened at a record low of 79.55 against the US dollar after closing at 79.44 in the previous session.
The dollar Index — which gauges strength in the greenback against six peers — increased 0.4 percent to touch a two-decade high of 108.3.
