Gold prices gains Rs 138, still shy of Rs 50,000; Silver jumps by Rs 224

During intraday trade, spot gold was down 0.1% at $1,641.59 per ounce as of 5.30 pm, after dropping as much as 1 per cent earlier to its lowest since April 2020 at $1,626.41 in the Asia session

Gold prices in the national capital rose by Rs 138 to Rs 49,786 per 10 grams on Monday, according to HDFC Securities. In the previous trade, the precious metal had closed at Rs 49,648 per 10 grams. Silver also jumped by  Rs 224 to Rs 56,514 per kilogram from Rs 56,290 per kg in the previous trade. In the international market gold prices were at their lowest level in 2-1/2 years on Monday, weighed down by a strong dollar and US Treasury yields amid the Federal Reserve’s hawkish stance on interest rate. 

During intraday trade, spot gold was down 0.1 per cent at $1,641.59 per ounce as of  5.30 pm, after dropping as much as 1 per cent earlier to its lowest since April 2020 at $1,626.41 in the Asia session. US gold futures fell 0.4 per cent to $1,648.80.  “We’ve got dollar strength and an increase in the  US Treasury yields, which typically would push gold lower. However, broadly speaking, gold isn't doing too badly in the scheme of things,” independent analyst Ross Norman said. 

The dollar index rose to a fresh high since 2002 against its rivals, boosted by a plunge in British sterling, making gold more expensive for other currency holders. Gold prices have fallen more than $400, or over 20 per cent, since scaling above the key $2,000 per ounce level in March as major central banks raised interest rates sharply to tame soaring inflation.