Gold prices today drop, down ?3,000 per 10 gram in just 4 days

Gold rates today were under pressure following a jump in US bond yields and a stronger US dollar though Ukraine crisis supported the yellow metal on the downside

Gold and silver prices fell today in Indian markets tracking softer global rates. On MCX, gold futures fell 0.3% to ?52,712 per 10 gram while silver dropped 0.6% to ?69970 per kg. Gold rates had jumped to ?55,558 last week, closer to all-time highs of ?56,200, hit in August 2020. In global markets, gold rates fell today as US Treasury yields rose on rate hike expectations. Another round of talks between Ukraine and Russia will be held today as international efforts to solve the crisis through diplomacy gathered momentum. Spot gold fell 0.7% to $1,971.77 per ounce.

Gold traders will be watching the outcome of this week's Fed meeting where the US central bank is expected to kick off its rate hike cycle.?Analysts say that gold was also under pressure on hopes of a breakthrough in Ukraine-Russia talks.?

“Spot gold prices went down in early morning trade today after a U.S. official confirmed that Russia is showing signs it might be willing to have substantial negotiations over Ukraine. On Friday, when similar news floated then we saw prices falling to the level of $1,958 but as talk failed we saw again prices settling towards $1,990," said Vidit Garg, director of MyGoldKart.

Moving forward, “technically $1987 is a very important level on the upside and breach of this level can lead it towards $2,010 levels again. While on downside $1,956 is a very important to support level from where we can witness $1,940 - $1,926 levels," he added.?

Benchmark US 10-year Treasury yields rose to a near one-month high as the U.S. Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point at a two-day event later this week. Gold is highly sensitive to rising interest rates, which increase the opportunity cost of holding non-yielding bullion.?

Among other metals, spot silver shed 0.9% to $25.58 per ounce, while platinum slipped 1.9% to $1,059.43.?

A stronger US dollar also put pressure on gold. The dollar index was up 0.07% to 99.257.?

“Last week, gold and silver showed profit taking from their highs after the dollar index gained and crossed 99 marks again. The dollar index showed strength after the U.S. inflation hit record 40 year highs in February. However, Russia-Ukraine crisis and global inflation concerns due to higher global energy prices supported both precious metals at lower levels," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“We expect precious metals to remain volatile this week ahead of the FOMC meeting. Gold has support at $1962-1948, while resistance at $2005-2020 per troy ounce. Silver has support at $25.35-25.00, while resistance is at $26.05-26.40 per troy ounce. In rupee terms, gold has support at Rs52,120–51,740, while resistance is at ?53,070–53,680. Silver has support at ?69,080- 68,455 while resistance is at Rs70,850–71500."

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