Gold rate today: Yellow metal rises marginally; silver reclaims Rs 62,000

Gold rate today: Yellow metal rises marginally; silver reclaims Rs 62,000

Gold prices inched up marginally to a month’s high on Friday, thanks to a muted US dollar that has added to the sheen of the yellow metal. Bullion was on track for the third straight weekly gain.

Gold prices advanced amid a retreat in the dollar index and disappointing macroeconomic data from the US, said ICICIDirect in its note. “However, sharp upsides were capped on a rise in risk appetite in the global markets.”

“According to ADP National Employment report on Thursday, private payrolls added 128,000 jobs last month, the lowest level in two years due to demand for labour starting to slow amid higher interest rates and tightening financial conditions,” it added.

Gold futures on

were trading with marginal gains of 0.08 per cent or Rs 41 at Rs 51,310 per 10 grams. However, silver futures gained 0.54 per cent or Rs 334 at Rs 62,670 per kg.

The US Federal Reserve is likely to continue tightening monetary policy beyond the half-percentage point interest rate hikes expected at each of its next two meetings, two policymakers signalled on Thursday.

Higher short-term US interest rates increase the opportunity cost of holding gold, which bears no interest. Signs of an economic crisis can be supportive of gold demand, as investors consider it a safe-haven asset.

Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver prices were up in the evening session on Thursday, supported by a drop in the US dollar index.

“The near-term chart postures are improving for both metals, and that’s also inviting more technically oriented traders to the long sides,” he added. “Bullion in domestic markets also settled on a positive note.”

In the spot market, the highest purity gold was sold at Rs 51,205 per 10 grams while silver was priced at Rs 62,076 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

After three sessions, the spot prices of gold have inched back to Rs 51,000 per 10 gram levels, whereas Silver advanced more than Rs 1,250 per kg in the last session.

Trading Strategy

“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,850 and resistance at $1,890 per ounce. MCX Gold Aug support lies at Rs 50,900 and resistance at Rs 51,700 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),

Securities.

Global markets

Spot gold was up 0.2 per cent at $1,871.28 per ounce, as of 0214 GMT, its highest level since May 9. Gold prices have risen about 1 per cent so far this week. US gold futures also climbed 0.2 per cent to $1,874.50.

Spot silver, which gained 0.5 per cent to $22.39 per ounce, has climbed 1.4 per cent so far this week. Platinum firmed 0.2 per cent to $1,024.57 and is set for a weekly uptick of about 7.4 per cent, its most since May 2021. Palladium climbed 0.5 per cent to $2,064.20.

About Author

Related posts

Leave a Reply