NEW DELHI: Gold prices slipped on Wednesday, pulling back from nearly eight-month highs, as signs of ease in tensions between Russia and Ukraine diminished the bullion’s appeal.

Gold prices had rallied to their highest since June last year on Tuesday, buoyed by safe-haven demand, before giving up all gains on news indicating some easing in Russia-Ukraine tensions. The higher inflation worries may cap the downside in gold.

Gold futures on MCX were trading down by 0.13 per cent or Rs 62 at Rs 49,323 per 10 grams. Silver futures eased more than 0.16 per cent or Rs 103 to Rs 62,886 per kg.

Ravindra Rao, CMT, EPAT, VP Head Commodity Research, Kotak Securities said gold has corrected as Russia’s move to withdraw some troops fueled hopes that tensions may subside and this has led to a shift from safe havens to riskier assets.

“Rise in bond yields and hopes of Fed’s aggressive rate hikes is also weighing on price. Gold may remain under pressure as market players shift focus to Fed ahead of FOMC minutes later today as the central bank is likely to maintain a hawkish stance,” he added.

In the spot market, the highest purity gold was sold at Rs 49,578 per 10 grams while silver was priced at Rs 63,105 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

Trading strategy
“We expect gold prices to trade down for the day with COMEX Spot gold support at $1,830 per ounce and resistance at $1,870 per ounce. MCX Gold April futures support lies at Rs 49,000 and resistance at Rs 49,700 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold was down 0.1 per cent at $1,850.91 per ounce, as of 0110 GMT. U.S. gold futures dropped 0.2 per cent to $1,852.40.

Among other precious metals, spot silver fell 0.2 per cent to $23.30 per ounce, platinum dipped 0.4 per cent to $1,021.92, while palladium rose 0.3 per cent to $2,253.66.