Bitcoin price – Yellow Metal Trades Higher Tracking Global Cues; Silver Dips
Gold prices were slightly increased in India on Wednesday tracking the global mood. On Multi Commodity Exchange (MCX), gold June futures were slightly up by 0.17% to Rs 48,388 for 10 grams at 11.40 am. However, silver was trading flat in the domestic market. On MCX, silver MCX July futures were down by 0.27% to Rs 73,000 at 11.40 am on May 19.
In the international market, gold prices rose to near four-month high on Wednesday thanks to weaker dollar, ahead of minutes from the US Federal Reserve’s last policy meeting. Spot gold was flat at $1,866.54 per ounce by 0303 GMT, after hitting its highest since January 29 at $1,874.80 in the previous session. US gold futures were steady at $1,868, according to Reuters. The dollar index held close to a near three-month low against its rivals, making gold less expensive for other currency holders.
“The gold market is seeing new momentum with prices back above $1,850 and the 200-day moving average, the yellow metal could be receiving support as volatility hammers cryptocurrencies,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited. Gold and silver prices closed lower on Tuesday. On MCX, June gold contracts closed lower by 0.35% at Rs 48,307 for 10 grams. July contract silver futures closed on Tuesday at 0.17% lower at Rs 73,196 a kilogram
“For most of the year, soaring bitcoin prices have taken some luster away from gold as investors look for safe-haven assets and hedges against rising inflation fears. However, the table seems to have turned as bitcoin prices have fallen nearly 34% from last month’s all-time highs of around $65,000 a token,” he mentioned.
“Silver sentiments remain firm as yields on US treasuries inched higher, with a weaker dollar and inflation fears maintaining a floor under bullion prices. Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, rose 0.7% to 1,035.93 tonnes on Monday, their highest since late-March,” analyst mentioned.
“Traders should focus important technical levels given below: June Gold closing price Rs 48,307, Support 1 – Rs 48,100, Support 2 – Rs 47,800, Resistance 1 – Rs 48,460, Resistance 2 – Rs 48,700. July Silver closing price Rs 73,196, Support 1 – Rs 72,300, Support 2 – Rs 71,500, Resistance 1 – Rs 74,050, Resistance 2 – Rs 74,500,” he said.
“In the wake of rising prices in the US, minutes of the Federal Reserve’s last policy meeting due on Wednesday are expected to provide further clarity on the central bank’s monetary policy outlook and policymakers’ views on inflation. The gold/silver ratio has dropped to around 65.5, meaning that silver has climbed even more sharply than gold. Indian Silver imports continued to fall, sliding 88% on year in April 2021 to Rs 88.60 crore,” Khare added.
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