Gold rates in India edged marginally higher on Wednesday, in line with spot gold, amid concerns about Russia-Ukraine developments, and hawkish comments from US Federal Reserve officials that bolstered the dollar to multi-year highs.

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On the Multi-Commodity Exchange (MCX), gold June contract was trading 0.05 percent higher at Rs 51,480 per 10 grams at 11:05 am, while the silver May contract was down 0.3 percent at Rs 65,986 per kg.

Meanwhile, spot gold was flat at $1,922.59 per ounce at 8:50 am, after declining 0.4 percent earlier in the session. US gold futures were down 0.1 percent to $1,926.20. Spot silver was flat at $24.32 per ounce while platinum shed 0.3 percent to $965.11.

It must be noted that gold is highly sensitive to rising US interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.

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Apart from FOMC minutes that are due later today, safe-haven buying, concerns about the Chinese economy, and inflation concerns have kept prices supported, Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said. He added that mixed factors may keep gold in a range above $1900, however, geopolitical risks may result in buying interest at lower levels.

“In Indian rupee terms, gold has support at Rs50,950–50,680, while resistance is at Rs51,540–51,720. Silver has support at Rs65,750- 65,320 while resistance is at Rs66,760–67150,” Rahul Kalantri, VP Commodities, Mehta Equities Ltd told CNBCTV18.com.

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