New Delhi: Gold prices fell in India on Wednesday after hitting 1-year high in the previous session. On MCX, gold futures were down 0.1% at ₹49,334 per gram. Silver futures on MCX today slipped 0.07% to ₹62,944 per kg.
In the previous session, gold had fallen sharply after hitting one-year high of ₹50,350, as signs of a slight de-escalation in the Russia-Ukraine standoff diminished the appeal of safe havens.
In global markets, spot gold was down 0.1% at $1,850.91 per ounce. Among other precious metals, spot silver fell 0.2% to $23.30 per ounce while platinum dipped 0.4% to $1,021.92.
“Comex gold trades marginally lower near $1853/oz after a 0.7% decline yesterday. Gold has corrected after testing June 2021 highs as Russia’s move to withdraw some troops fueled hopes that tensions may subside and this has led to a shift from safe havens to riskier assets. Rise in bond yields and hopes of Fed’s aggressive rate hikes is also weighing on price. Gold may remain under pressure as market players shift focus to Fed ahead of FOMC minutes later today as the central bank is likely to maintain hawkish stance,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
Gold traders will be looking ahead to today’s scheduled release of minutes from Fed’s January 25-26 policy meeting.
Global equities rebounded on Tuesday, while oil prices fell after Russia indicated it was withdrawing some troops from exercises near Ukraine and President Vladimir Putin said he saw room for further discussion with the West.
“Gold spot on daily chart formed Bearish Engulfing candle pattern and trading near crucial resistance zone indicates that it may witness selling pressure in short term. Advisable to take short position near $1,864.5-$1865 with stop-loss at $1879.5 for target of $1844-1840,” said Vidit Garg, director at MyGoldKart.