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Gold Price Today: Yellow metal extend gains while silver continues to fall

Gold Price Today: Yellow metal extend gains while silver continues to fall

Gold Price Today: Yellow metal extend gains while silver continues to fall
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By Asmita Pant  May 20, 2022 12:30:39 PM IST (Published)

Domestic gold prices extended gains on Friday after suffering a setback a day in trade a day before. A retreat in the US dollar from two-decade highs led to a resurgence in safe-haven demand for gold prices worldwide.

Domestic gold prices extended gains on Friday after suffering a setback a day in trade a day before. A retreat in the US dollar from two-decade highs led to a resurgence in safe-haven demand for gold prices worldwide.

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The rupee opened at 77.51 against the US dollar on Friday, before appreciating 77.49 in the opening trade.
MCX gold futures for a June delivery were slightly up by Rs 44 or 0.09 percent to Rs 50,588 per 10 grams as of 0945 am. MCX silver futures however fell by Rs 104 or 0.17 percent to Rs 61,460 per kilogram.
Globally, spot gold remained flat at $1,841.37 per ounce, as of 0104 GMT, after rising as much as 1.9 percent in the previous session. Spot silver was 0.2 percent down to $21.87 per ounce. Domestically, spot gold was up, as of 0950 hrs, by Rs 296 or 0.21 percent to Rs 142,835. 
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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said that the supporting gold price "are increasing growth worries, higher inflationary pressure and China’s efforts to boost growth."
He added: "ETF (exchange traded fund) inflows also show pick up in buying interest after recent decline. Gold has set fresh high near $1850/oz indicating pick up in buying interest however Fed’s monetary tightening stance may limit any major upside."
The dollar index — which gauges strength in the greenback against six peers — was up 0.29 percent to 103.02.
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart stated that the weakness in the US equity, the dollar index and bond yields supported safe haven buying in precious metals.
He added, "We expect gold could test $1,858 per troy ounce and silver could also test $22.40 per troy ounce levels in the upcoming session. At mcx, gold is having support at 50,330-50,100 and resistance at 50,750-50,920 while silver is having support at 61,100-60,660 and resistance at 61,900-62,500."
Jain suggested buying gold on dips around Rs 50,350 with a stop loss of Rs 50,100 on a closing basis for the target of Rs 50,800 and silver on dips around Rs 61,100 with a stop loss of Rs 60,600 on a closing basis for the target of Rs 62,400.
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