Domestic gold prices climbed on Monday as global benchmarks slumped from the one-month high mark as red-hot US inflation data pushed the Treasury yields higher. Global oil benchmarks dipped after amid rising COVID cases and fresh restrictions in China. Global and Asian equities opened in red on Monday.

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India's 10 year bond yields reached almost 7.6 percent.

The rupee opened at a record low of 78.11 against the US dollar on Monday after settling at 77.83 in the previous session.

MCX gold August futures rose by as much as 1.55 percent to touch the intraday high of Rs 51,797 per 10 grams. Silver followed suit, with the white metal's July futures rising by 1 percent to Rs 62,066 per kilogram.

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Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said, "Gold may remain choppy as its safe haven appeal is countered by prospect of higher interest rate however with Fed meeting around the corner, firmness in US dollar may keep pressure on gold prices.”

Indian equity benchmarks started the week in red after witnessing negative trends throughout last week. Nifty 50 was down by as much as 3.3 percent at 33,330.2. BSE Sensex fell 2.8 percent to 52,791.4. The dollar Index — which gauges strength in the greenback against six peers — was by 0.4 percent at 104.45.

Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart expects gold and silver to remain volatile this week. "At MCX, gold is having support at Rs 51,440 - Rs 51,180 and resistance at Rs 51,920 - Rs 52,100 while silver is having support at Rs 61,330 - Rs 60,660 and resistance at Rs 62,550 - Rs 63,100," he said.

Jain suggests buying silver around Rs 61,500 with a stop loss at Rs 60,800 on a daily closing basis for the target of Rs 63,000.

Also Read: Oil prices slide on Beijing COVID warning, inflation concerns

First Published:Jun 13, 2022 12:33 PM IST