An expert says that precious metals like gold and silver have largely ignored the 25 bps rate hike by the ECB.
India’s gold demand declined by 17 per cent to 112.5 tonnes during the January-March quarter
A day after touching an all-time high, gold and silver prices gained further ground in both the global and domestic markets in early trade on Friday. This increase was registered due to the weakening of the US dollar and the ongoing bank crisis in the US. However, gold futures for June 2023 contracts on MCX declined by 0.24 per cent to Rs 61,345 per 10 grams at 1:41 pm.
Silver was also trading at Rs 77,923 per kg on MCX at 1.42 pm in July 2023 futures trading, with a slight decline of 0.15 percent.
During early trade, Rahul Kalantri, Vice President (Commodities), Mehta Equities said, “Gold prices were flat while silver prices edged higher on Thursday, with both the precious metals poised for their biggest weekly gain in nearly two months on hopes of consolidation.” Are ready. The interest rate hike cycle from the US central bank and the looming banking crisis are expected to boost the appeal of the safe-haven metal.”
He said the precious metals have largely ignored the 25 bps rate hike by the ECB, a sign that the central bank is looking to stop its tightening cycle.
“We expect Gold & Silver to remain highly volatile in today’s session. Gold has found support at $2034-1922 while resistance lies at $2055-2068. Silver has taken support at $25.74-25.55, while resistance lies at $26.20-26.35. In INR terms, gold has taken support at Rs 61,180-60,820, while resistance lies at Rs 61,770-61,950. Silver has support at Rs 76,550-76,020, while resistance lies at Rs 77,850-78,350.
Meanwhile, according to the World Gold Council (WGC), India’s gold demand fell 17 per cent to 112.5 tonnes during the January-March quarter as record high gold rates and high price volatility hit consumption.
Total gold demand during the same quarter in 2022 was 135.5 tonnes, said WGC’s Gold Demand Trends for the first quarter of 2023.
“India’s gold demand in the first quarter of 2023 fell 17 per cent year-on-year to 112.5 tonnes following record high and volatile gold prices. This impacted sentiment and gold jewelery demand declined to 78 tonnes from 94.2 tonnes in Q1 2022, with little support from the investment side.
read all latest business news, tax news And stock market update Here
