Gold rates are approaching their lowest in three months, while silver prices are also down

Gold prices in plummeted to near three-month lows ahead of the release of monthly US inflation statistics, which experts believe would have an influence on the Federal Reserve’s monetary policy stance. Later in the day, at 6 p.m., the US inflation reading will be released. Gold prices on the MCX were down 0.3 percent to $50,421 per grams, while silver futures were down 0.5 percent to $60,310 per kg. Gold has been under pressure since early March, when the dollar rose against the backdrop of rising US Treasury rates, dampening investor excitement for the safe haven commodity.

The US Federal Reserve hiked its benchmark overnight lending rate by half a percentage point last week, but many analysts are questioning whether it has gone too far in tightening monetary policy. Gold is viewed as an inflation hedge and a safe haven in times of political and economic turmoil, but it is especially vulnerable to increasing short-term US interest rates, which boost the opportunity cost of keeping zero-yield metal.

Spot gold sank to a three-month low in international markets Wednesday, ahead of critical US inflation data. As the dollar index stayed near 20-year highs, spot gold was down 0.3 percent at $1,832.06 per ounce. For holders of foreign currencies, a rising dollar makes greenback-priced bullion less appealing. Spot silver declined 0.1 percent to $21.23 per ounce, while platinum rose 0.1 percent to $964.64 and palladium dropped 1.2 percent to $2,040.25.

“Despite some reprieve in the US dollar and US bond rates, gold and silver prices continued to fall. Tuesday’s morning session saw gold and silver rally a little, but they couldn’t hold on to their gains and slid below important support levels of $1840 for gold and $21.30 for silver. “Gold and silver prices plummeted on Tuesday after a member of the United States Federal Reserve stated aggressive interest rate rises may be implemented to combat inflation.

“The dollar was turbulent on Tuesday, swinging between minor gains as traders awaited the US Consumer Price Index data on Wednesday, which might give insight into the Federal Reserve’s future monetary policy path.” Investors have been in a risk-on attitude, with the yield on the benchmark US 10-year note easing down below the psychological barrier of 3%, after reaching its highest level since 2018 at 3.20 percent “On Monday, I ordered.”

“The support level for gold is $1822-1810, while the resistance level is $1850-1862. The support level for silver is $21.10-20.80, while the resistance level is $21.58-21.70. Silver has support at 60,140-59,750 and resistance at 61,150–61,510 in rupee terms, while gold has support at 50,330–50,110 and resistance at 50,880–51,050 “