Gold rate today: Yellow metal edges higher; silver marches lower to Rs 58,000 on MCX

Gold rate today: Yellow metal edges higher; silver marches lower to Rs 58,000 on MCX

NEW DELHI: Gold prices edged higher on Tuesday, following the pullback in the US dollar, while investors awaited further cues on the US Federal Reserve’s interest rate-hike path.

The Fed will go for its fourth consecutive 75 basis point interest rate hike on November 2, according to economists polled by Reuters, who said the central bank should not pause until inflation falls to around half its current level.

US Treasury yields held near multi-year highs following strong labour market data and hawkish comments from Federal Reserve officials, dampening the appeal for zero-yield bullion.

Gold futures on

were trading flat, rising marginally by 0.08% or Rs 42 at Rs 50,622 per 10 grams. However, silver futures jumped by 0.23% or Rs 132 at Rs 57,880 per kg.

Gold is considered a hedge against inflation, while higher interest rates increase the opportunity cost of holding zero-yield bullion.

Top gold consumer China’s economy rebounded at a faster-than-anticipated clip in the third quarter, but a more robust revival in the longer term will be challenged by persistent COVID-19 curbs, a prolonged property slump and global recession risks.

In the spot market, the highest purity gold was sold at Rs 50,062 per 10 grams while silver was priced at Rs 55,555 per kg on Friday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have eased more than Rs 1,700 in the last two weeks, whereas silver in the spot market has eased about Rs 5,300 per kg during the same period under review.

Global markets
Spot gold rose 0.3% to $1,653.28 per ounce, as of 0059 GMT, while US gold futures were up 0.2% at $1,657.70.

Spot silver rose 0.4% to $19.33 per ounce, platinum was flat at $925.00 and palladium rose 0.7% to $1,982.33.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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