NEW DELHI: Gold prices gained on Monday amid reports Western nations are planning to officially ban imports of the metal from Russia.
Four of the Group of Seven (G7) rich nations moved to ban imports of Russian gold on Sunday to tighten the sanctions squeeze on Moscow and cut off its means of financing the invasion of Ukraine.
Gold futures on
were trading higher, gaining almost 0.28 per cent or Rs 143 at Rs 50,766 per 10 grams. Meanwhile, silver futures advanced about 0.82 per cent or Rs 496 to Rs 60,915 per kg.
Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of holding bullion, which yields no interest.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities said that gold is supported by increasing growth concerns amid disappointing data and downbeat growth forecasts. Monetary tightening expectations and some stability in equities have however limited upside, he said.
“Gold ETFs have also seen net outflows reflecting weaker investor buying. Gold may remain a range amid warring factors however Fed’s tightening expectations may keep pressure on prices,” he added.
In the spot market, the highest purity gold was sold at Rs 50,829 per 10 grams while silver was priced at Rs 59,350 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have plunged close to Rs 400 per 10 grams in the last one week, whereas silver has plunged more than Rs 2,200 in the same period under review.
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,820 and resistance at $1,850 per ounce. MCX Gold August futures support lies at Rs 50,500 and resistance at Rs 51,200 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold rose 0.5 per cent to $1,835.58 per ounce. US gold futures were up 0.3 per cent at $1,836.30.
Spot silver rose 1.2 per cent to $21.36 per ounce, platinum gained 0.5 per cent to $912.00 and palladium climbed 0.6 per cent to $1,886.65.
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