Gold and silver prices have slipped to multi-month lows as strong US economic data has fueled fears of a rate hike. MCX Gold has been under selling pressure for the last few weeks after it broke the strong support zone of the 56,500 level. The broader trend on COMEX could be in the range of $1780-1830, while on the domestic front, prices could hover in the range of Rs 55,000-56,100.
On Monday, gold April futures were trading at Rs 55,307 per 10 grams, down Rs 125 or 0.23%, while silver March futures were trading lower by Rs 798 at Rs 63,734 per kg on MCX. Spot gold was unchanged at $1,810.48 per ounce, while US gold futures were flat at $1,817.40. . Many observers believe that rising interest rates are good for gold, and Praydear sees a steady annual increase in bullion of 4% to 5% until 2025. He believes that this is a conservative estimate, as gold has done an average of 9% over the past 20 years and 70% over the past 50 years. Praydear is optimistic that the increase in gold this year will be higher than 5% and could be closer to 7% or 8%.