New Delhi, Jul 14, 2022, By Agencies
New Delhi July 14: Gold was trading lower in the morning trade in Indian markets on July 14 on weak global cues, with the bullion outlook hurt by fears that the US Federal Reserve could go for a more aggressive interest rate hike to fight sky-rocketing inflation.
At 9.27 am, gold contracts were trading 0.22 percent lower on the Multi-Commodity Exchange (MCX), at Rs 50,690 for 10 grams and silver was down 0.42 percent at Rs 56,887.
In the international market, spot gold fell 0.2 percent to $1,731.19 an ounce at 0312 GMT. US gold futures dropped 0.5 percent to $1,727.30, as benchmark US 10-year treasury yields rose, weighing on the appetite for zero-yield gold.
US inflation for June was higher than expected, raising fears of another big interest-rate hike by the Federal Reserve later this month.
The consumer price index (CPI) rose 9.1 percent from a year earlier in a broad-based advance, the largest gain since the end of 1981, data showed on July 12. The widely followed inflation gauge increased 1.3 percent from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs, Bloomberg reported.
The US dollar, which moves opposite to gold, fell 0.47 percent as inflation reached a 41-year high. Rising inflation amid a rising interest rate scenario increases the concern of recession and supports gold prices.
Bullion prices may see selling pressure near resistance levels. Gold has resistance at Rs 51,050 and support at Rs 50,500. Silver has resistance at Rs 57,500 and support at Rs 56,000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
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