Domestic gold prices extended losses on Friday after global benchmarks were on track for their second weekly decline as concerns over rising rates kept investors on their toes.
On MCX, gold futures fell to almost two weeks of Rs 50,510 per 10 grams at 09:44. Silver relinquished his initial losses and was back in the green at the last count. July white metal futures rose slightly to Rs 59,526 per kilogram.
Hemant Kanawala, Head Equity, Kotak Mahindra Life Insurance Co Ltd, said: “While aggressive rate hikes have increased the risks of slower growth in the short term, the expected slowdown in demand will also contribute to the cooling of the medium-term inflation. Commodity prices have started to reflect the same.”
“As such, as new inflation and growth dynamics unfold, markets should remain in a consolidation phase,” he added.
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“We expect gold and silver prices to remain volatile today.
Jain suggests buying gold on dips around Rs 50,450 for the target of Rs 50,850 with a stop loss at Rs 50,220.
Global oil benchmarks edged higher as concerns over limited supply offset a possible drop in demand.
Global stock indices rose on Tuesday. Indian equity indices widened on Friday amid a positive trend in global equities. The Rupee opened at 78.22 against the US Dollar after stabilizing at 78.30 in the previous session.
The dollar index – which measures the strength of the greenback against six peers – edged up to 104.51.