Gold prices are down on April 25 in the global markets near to their lowest level in two weeks touched in the previous session as an elevated US dollar continued to pressure demand for greenback-priced bullion. On the Multi-Commodity Exchange (MCX), Gold contracts were down 0.36%, trading at Rs 52,073 for 10 grams, Silver also down 1.15% to Rs 65,780 a kilogram.
On Friday Gold prices fallen to their lowest since April 7 and marked a weekly decline as signs of faster policy harden by the U.S. Federal Reserve lifted Treasury yields and the dollar. The dollar, which normally moves inverse to gold prices, hit more than two-year high and closed above the 101 mark on Friday, while U.S. Ten year treasury yield near at Three year high.
All Fed members are pushing a half percent rate hike in the coming policy meeting, though the rate hike in the past meeting was a quarter-point. The yellow metal is highly sensitive to rising U.S. short-term interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion.
“We anticipate some more weakness in gold price in today’s session. Gold has support at Rs 51,920–51,770 evels, while resistance is at Rs 52,420–52,550 levels. Silver has support at Rs 66,050- 65,710 levels, while resistance is at Rs 66,890–67,270 levels” said, Rahul Kalantri, VP Commodities, Mehta Equities.