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Gold Rates Fall by 1,200 Per 10 gram ahead of Akshaya Tritiya, Check Today’s Gold Rates

May 2, 2022

Gold prices today fell sharply in Indian markets amid weak global cues. On MCX, gold futures were trading around 2.2% lower at two-month lows of ₹ 50,610 per 10 gram, tracking weak global cues. Silver futures were down 2.5% at ₹ 62,708 per kg. Ahead of Akshaya Tritiya, the precious metal is down about ₹ 5 ,000 from March highs as global rates have also corrected sharply amid elevated US bond yields and a firm US dollar. 

In global markets, gold rates were down 0.6% at $1,884.50 per ounce. The Fed meet will be held this week and the market is pricing in a 50 basis point hike. The U.S. central bank’s Federal Open Market Committee is scheduled to begin its two-day meeting on May 3. The uncertainty is around how hawkish Fed Chair Jerome Powell will sound in comments following the decision. Higher short-term U.S. interest rates and bond yields tend to increase the opportunity cost of holding bullion, which yields nothing.

Among other precious metals, spot silver fell 0.6% to $22.61 per ounce, platinum dipped 0.4% to $927.08, and palladium slid 2.8% to $2,255.60.

The recent correction in gold prices ahead of Akshaya Tritiya offers investors a good opportunity to buy the precious metal, says Axis Securities. Gold prices have historically inched higher during the times of Akshaya Tritiya but this time the rising anticipation of the Fed’s aggressive policy stance has put pressure on the metal prices.

“This could be a perfect time for investors looking for a window of opportunity to start investing in gold. Recently, Gold prices have come under pressure as the Federal Reserve looks almost certain to approve a 50- basis point rate hike at the May policy meeting on Wednesday, the highest hike in over two decades,” says Pritam Patnaik, Head – Commodities, HNI & NRI Acquisitions.

“During periods of high inflation, recession, and geopolitical turmoil, gold has been the asset of choice as the ultimate safe haven bet. Of late, a strong US dollar has diverted some of the flows, but gold continues to be the largest benefactor,” he added.

Mr Patnaik suggests a staggered approach to investing.

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